FY24/2 Q3 Corporate Presentation
January
13, 2024
2023
January 11,

Ichigo (2337)© Ichigo Inc. All rights reserved.

www.ichigo.gr.jp/en

We would like to express our deepest condolences
to all those impacted by the January 1, 2024
earthquake in Ishikawa Prefecture, and our wishes
for the earliest and fullest possible recovery for all.

© Ichigo Inc. All rights reserved.

2

Make The World
More Sustainable© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

© Ichigo Inc. All rights reserved.

Contents
FY24/2 Q3 Summary
FY24/2 Q3 Earnings‒ All-In Disclosure for Increased Earnings Transparency‒ All-In OP +20%, Cash EPS +17% (YOY)‒ Segment Earnings Details‒ Stock + Flow Earnings‒ Strong Financial BasePowerful Value-Add Business Model & Sustainability
Focus Drives Sustainable Growth‒ Hotels: On Track for Record Hotel Stock Earnings‒ SRE: Selective on Acquisitions & Sales‒ Offices: Serving Unmet Tenant Needs via Ichigo-Designed
Offices‒ Ichigo Owners: High Value-Add Business Model‒ Ichigo Owners: Strong Growth via Meeting Clients’ Diverse
Needs‒ Ichigo Owners: 3rd Ichigo Residence Token Sold Out
Immediately‒ Ichigo Owners: Ichigo Residence Token First Token on
New START Exchange‒ Ichigo Owners: Expanding Presence in Growing Real
Estate Token Market‒ AM: Growth & ESG Support for Ichigo REITs & Ichigo
Green‒ CE: Environmental Contribution & Long-Term Growth© Ichigo Inc. All rights reserved.

‒ CE: Ichigo Ebino Suenaga ECO Power Plant Starts
Operation‒ Shareholder Returns: FY24/2 Share Buyback (JPY 3B)‒ Shareholder Returns: Progressive Dividend Policy‒ Shareholder Returns: Ichigo J.League Shareholder
ProgramWorking to Protect Our Global Environment‒ Ichigo Climate Positive: CO2 Reductions vs. Emissions‒ Continued Renewable Energy Transition‒ Ichigo Sports: J.League Tegevajaro Miyazaki Acquisition

Appendices
Ichigo’s Sustainability Commitment (ESG)
Sustainable Growth as a Sustainable Infrastructure Company
Financial & Operational Data
Sustainable Real Estate Details
Asset Management Details
Clean Energy Details
Financial Statements
Ichigo 2030: Ichigo as a Sustainable Infrastructure Company
Ichigo 2030: New Initiatives

6

FY24/2 Q3 Summary– All-In Operating Profit +20%, Cash EPS +17% YOY
 Stock Earnings: Forecast to Hit Record High, Exceeding FY19/2 (JPY 18.4B)– Hotel Earnings Major Growth Driver – RevPAR +31% vs. Pre-Covid on
Increased Rental Income & Hotel Operating Revenue
 Flow Earnings : Diversifying Sales Channels via Security Tokens– 3rd Ichigo Residence Token Sold Out Immediately: JPY 16B AUM Increase +Ongoing Stock Earnings. Sale (7 Residences) to Complete in Q4– Acquisitions JPY 74.1B (Includes Contracted, Pre-Settlement as of Q3)
 Expanding Pipeline to Drive Growth of Ichigo Owners, Ichigo Office (8975), &Ichigo Hotel (3463)
 Contracted, Pre-Settlement: JPY40.2B (1 Office JPY 4.9B, 2 Hotels JPY 20.2B,
11 Residential Assets JPY 15.0B)– Ichigo Office (8975) Share Purchase (JPY 3.5B) Announced Today Strengthening Ichigo’s Commitment to Ichigo Office as its Sponsor & Driving its
Growth – 2nd Ichigo Purchase of Ichigo Office Shares in FY24/2
Note: RevPAR (Revenue Per Available Room) = ADR (Average Daily Rate) * Occupancy© Ichigo Inc. All rights reserved.

7

FY24/2 Q3 Summary
Robust Stock Earnings

Durable Earnings Model
Stock Earnings/Fixed Expenses

225%■ FY23/2 Q3■ FY24/2 Q3+33%(JPY million)

Fixed
Expenses
JPY 6.6B

Sustainable
Real Estate
(SRE)
+57%

Flow
Earnings
JPY 10.4B Cash Earnings

JPY 25.4B

Asset
Management
(AM)

Clean
Energy(CE)14,957
11,2619,617
6,129

Stock Earnings
JPY 15.0B
% of
Total

+14%

3,639 3,645

1,492 1,694
54%

64%

13%

11%

35%

25%

Note: Stock Earnings: Rental Income, Power Generation Revenue, Base AM Fee, Depreciation
Flow Earnings: Sustainable Real Estate Gains on Sale Fixed Expenses: Fixed SG&A + Interest Expenses
Cash Earnings: Gross Profit + SRE Extraordinary Gains on Sales + Depreciation© Ichigo Inc. All rights reserved.

8

FY24/2 Q3 Earnings© Ichigo Inc. All rights reserved.

9

All-In Disclosure for Increased Earnings Transparency– All-In disclosure allows for transparent tracking of full profitability
contribution of Sustainable Real Estate (SRE)– SRE is a core business, and Ichigo executes value-add on SRE assets
regardless of whether they are classified in accounting terms as Real
Estate for Sale (Current Assets) or Fixed Assets– Adding SRE’s Fixed Assets Gains on Sales (which are accounted for as
Extraordinary Gains in J-GAAP) to Operating Profit (OP) and Recurring
Profit (RP) to generate All-In OP & RP numbers thus provides
transparency on SRE’s actual core profit contribution© Ichigo Inc. All rights reserved.

10All-In OP +20%, Cash EPS +17% (YOY)
Rental Income Increasing Across All Asset Types(JPY million)

FY23/2 Q3

FY24/2 Q3YOY

FY24/2
Forecast

9,111

7,927

-13.0%

9,500

All-In Operating Profit

13,527

16,266+20.3%

18,000Recurring Profit

8,000

5,803

-27.5%

6,000

All-In Recurring Profit

12,41614,142+13.9%

14,500Net Income

8,470

9,590

+13.2%

10,000Cash Net Income

11,891

13,617+14.5%

15,500EPS

JPY 18.32

JPY 21.21+15.8%

JPY 22.06

Cash EPS

JPY 25.71

JPY 30.11+17.1%

JPY 34.19

Operating Profit

All-In Operating Profit (All-In Recurring Profit) = Operating Profit (Recurring Profit) + SRE Extraordinary Gains on Sales
Cash Net Income = Net Income + Depreciation + Amortization +/- Valuation Losses (Gains)© Ichigo Inc. All rights reserved.

11

Segment Earnings Details− AM: Hotel Base AM Fee Increase on Back of Strong Travel Demand− SRE Stock Earnings: Forecast Record High on Surging Hotel Earnings− SRE Flow Earnings: Sales to Accelerate in Q4− CE: Lower on One-Off Plant Maintenance(JPY million)
All-In Operating Profit

Segment

FY23/2 Q3

FY24/2 Q3All-In Gross Profit
FY24/2
Forecast

YOY

FY23/2 Q3

FY24/2 Q3Earnings(Parentheses show YOY change in
Gross Profit)

YOY

Base AM Fees 1,618 (+194)
Ichigo Office 1,119 (-21)
Ichigo Hotel 343 (+244)
Private Funds 123 (-26)
Ichigo Green Operator Fees 32 (0)Flow Earnings 132 (+132)

Asset Management (AM)

1,055

1,105

+4.7%

1,000

1,492

1,826

+22.4%

Sustainable Real Estate (SRE)

10,72913,469+25.5%

15,30014,54817,729+21.9% Rental Income (Net of Depreciation)

Multi-Asset

7,615

11,545+51.6%

11,10010,727

14,953

Ichigo Owners

3,113

1,923

-38.2%

4,200

3,820

2,776

7,423 (+3,837)*
Depreciation
2,193(-349)+39.4%
Gains on Sales 10,304 (-650)
Fixed Asset Gains on Sales 4,378 (-37)-27.3% Gains on Sale of Subsidiary Shares 3,960 (+3,960)

Clean Energy (CE)

1,772

1,685

-4.9%

1,700

2,326

2,328

+0.1%

-29

6

－

－

－

－

－

13,527

16,266+20.3%

18,00018,366

21,844+19.2%

Adjustment (including offsets of
Cross-segment transactions)
Total

Power Generation Revenue (Net of Depreciation)
2,328 (+1)* Depreciation 1,317 (+4)

AM & CE All-In Operating Profit = Operating Profit; SRE All-In Operating Profit = Operating Profit + SRE Extraordinary Gains on Sales
AM & CE All-In Gross Profit = Gross Profit; SRE All-In Gross Profit = Gross Profit + SRE Extraordinary Gains on Sales© Ichigo Inc. All rights reserved.

12

Stock + Flow Earnings
Forecast Record-High Stock Earnings (JPY 19B) Driven by Hotels
Expect Further Earnings Growth Across All Segments in FY25/2■ Stock Earnings ■ Flow Earnings
234% Stock Earnings/Fixed Expenses
Cash Earnings
37,016

Q3 Actual
225%
InitialForecast

195%

191%

193%

28,97018,5675,850

FY20/2

188%

30,467

24,705
20,91518,450(JPY million)

25,396
13,371

13,482Contracted
11,70010,438

9,793

15,065

14,912

15,59816,985

FY21/2

FY22/2

FY23/2

FY24/2
Initial Forecast© Ichigo Inc. All rights reserved.

30,70014,957

FY24/2 Q3(9M)

Forecast
19,000FY24/213

Strong Financial Base
Weighted Average Loan Period
Weighted Average Remaining Loan Maturity
Weighted Average Interest Rate

Average Interest Rate & Loan Term
(Interest Rate)
2.5%
10.0 years

10.0 years

10.1 years(Loan Term, Years)
1210.0 years
9.4 years
92.0%
7.6 years

7.2 years
6.5 years

6.1 years

1.5%

1.0%

5.6 years

6

3

0.91%

0.92%

0.89%

0.89%

0.89%

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 Q3

00.5%

Term Structure of Loans
Short-Term

9% (JPY 15.6B)

8% (JPY14.9B)

7% (JPY 12.5B)

6% (JPY 9.8B)

12%(JPY 23.6B)

91%(JPY 157.5B)

92%(JPY 162.7B)

93%(JPY 155.9B)

94%(JPY 157.8B)

88%(JPY 165.9B)

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 Q3Long-Term© Ichigo Inc. All rights reserved.

14

Powerful Value-Add Business Model & Sustainability Focus
Drives Sustainable Growth© Ichigo Inc. All rights reserved.

15

Sustainable Real Estate: Hotels

On Track for Record Hotel Stock Earnings
RevPAR +31% vs. Pre-Covid, Driven by Ichigo Brand Hotels
 THE KNOT TOKYO Shinjuku +25%
 The OneFive Villa Fukuoka & The OneFive Terrace Fukuoka +106%
Hotel Il Palazzo +22%
JPY 11,256

Hotel Stock Earnings
RevPAR(JPY million)

Hotel Revenue
Forecast to Exceed
Pre-Covid

JPY 8,565

JPY 7,256

JPY 2,531

JPY 3,807

4,315

3,994
2,681
563
FY20/2
Pre-Covid

FY21/2

1,100

FY22/2

FY23/2

FY24/2 Q3(9M)

FY24/2Full-Year

Hotel Stock Earnings = Hotel Rental Income + OneFive Hotels Operating Revenue + Ichigo Hotel Base AM Fees + PROPERA Revenue© Ichigo Inc. All rights reserved.

16

Sustainable Real Estate

Selective on Acquisitions & Sales (1)Acquisitions: JPY 74.1B (FY24/2 Full-Year Forecast)− Q3 Acquisitions: JPY 33.9B (Multi-Asset: JPY 3.8B, Ichigo Owners: JPY 30.0B)
 Q4 Acquisitions (Contracted, Pre-Settlement): JPY 40.2B(Multi-Asset: JPY 25.1B, Ichigo Owners: JPY 15.0B)

Sales: JPY 43.8B− Q3 Sales: JPY 31.8B (Multi-Asset: JPY 17.2B, Ichigo Owners: JPY 14.5B)
 Q4 Multi-Asset & Ichigo Owners Sales (Contracted, Pre-Settlement): JPY 11.9B(Includes JPY 8.9B Ichigo Residence Token)
FY24/2 Q3 Net Acquisitions: JPY 2.0B

Multi-Asset

Ichigo Owners(JPY million)

Acquisitions
No. of Assets

Sales

Book Value (A)No. of Assets

Difference(A) – (B)Sale Price (B)Office

1

2,723

－

－

+2,723

Hotel

－

－

6

16,080-16,080

Retail

－

－

1

952

-952

Residential

1

11

3

183

-172

Logistics

1

1,084

－

－

+1,084

Other

－

－

1

81

-81

Residential

24

30,09812

13,795+16,303

Retail

－

－

1

750

-750

27

33,91624

31,841+2,075Total

Note: Book Value of Sales: JPY 30.3B (excludes self-storage assets (36 assets, JPY 3.9B Gains on Sale))© Ichigo Inc. All rights reserved.

17

Sustainable Real Estate

Selective on Acquisitions & Sales (2)Forecasting Record Sales & Acquisitions, Driven by Ichigo Owners Growth− Sales: Increasing Sales to Ichigo REITs & Tokens – Drives AUM Growth Sold 5 hotels to Ichigo Hotel & 7 residences to 3rd Ichigo Residence Token− Acquisitions: Multi-Asset: Acquired Offices & Hotels to Expand REIT Pipeline
Owners: Sales Channel Expansion Supporting Growth
SRE Sales & Acquisitions(JPY B)■ Sales to Third-Parties■ Sales to Ichigo REITs & Ichigo Tokens■ Acquisitions (Book Value)

74.1

60.6
55.1
40.2

45.8

43.8
2.9*

63.0

9.0

56.1

32.9
38.2

41.4

FY20/2

FY21/2

9.0*

50.7
33.9

31.0

22.7
12.8

4.4

50.0

FY22/2

5.1

FY23/2

FY24/2Q3(9M) *Pre-Settlement,

Notes: Ichigo Residence Tokens are security tokens, i.e., highly secure digital investment products with properties of traditional securities
that are managed on a blockchain. Sales & Acquisitions excludes Gains on Sale of self-storage business (JPY 3.9B)© Ichigo Inc. All rights reserved.

ExecutedContracts
18

Sustainable Real Estate: Offices

Serving Unmet Tenant Needs via Ichigo-Designed Offices
Ichigo Core Focus on Innovating to Serve Tenants− Significant Tenant Demand to Reduce Move-In Costs & All the Work inContracting the Design & Build-Out of New Offices− Solution: Provide Attractive, “Ready to Move In” Offices
 Ichigo design professionalism & strong aesthetics
 Open, seamless interiors foster communication & support high productivity
Ichigo-Designed “Ready to Move In” Offices
Asset

RentalGrowthAsset

RentalGrowthAsset

RentalGrowthCocoro Kanda Bldg
(Chiyoda-ku, Tokyo)+80%

Ichigo Otemachi North Bldg
(Chiyoda-ku, Tokyo)+50%

Axive Tenjin(Chuo-ku, Fukuoka)+60%© Ichigo Inc. All rights reserved.

19

Sustainable Real Estate: Ichigo Owners

High Value-Add Business Model
Advantaged Ichigo Capabilities & Cost Competitiveness Built upon Ichigo’s
Strong PASEO Residential Brand & Deep Developer Support & Synergies− Development, Marketing, & Branding Tailored to Diverse Buyer and Tenant Needs− Eliminate Development Risk & Cut Costs via Outsourcing Construction to ThirdParty Developers− Construction Quality Control by Ichigo Engineering Organization
Third-Party Developers(Construction)

ProvideKnow-How

PASEO Series
165 Buildings (4,463 Rooms)
Quality Control
by Ichigo Engineering

PASEO Series
GRAN PASEO
GRAN PASEO
Shibakoen Nakameguro East/West

Marketing &Branding

Acquisitions
Ichigo-Tailored Specs

Investment Products Sales/Management
Diverse Channels

Collect Tenant Needs
c. 2,000 units p.a.
Collect Buyer Needs
115 assets over 7 years.
© Ichigo Inc. All rights reserved.

20

Sustainable Real Estate: Ichigo Owners

Strong Growth via Meeting Clients’ Diverse Needs
Forecasting Record Sales & Acquisitions− Addressing Large B2C Market via Ichigo Residence Tokens− Sales Channel Expansion & Economies of Scale Driving Competitive Advantage
Ichigo Owners Residential Acquisitions & Sales■ Sales■ Acquisitions(JPY B)

4.2

15.0*

3.8

3.5
50.0

2.1
1.4
Operating
Profit

0.1
5.4

30.6

28.5

1.0
11.7 13.7

11.2*

36.0
24.3

28.0

26.7
18.1

40.0

30.0
14.5

8.0

2.4

FY18/2(Establishment)

FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 Q3(9M)

FY24/2
Forecast*Pre-Settlement, Executed Contracts© Ichigo Inc. All rights reserved.

21

Sustainable Real Estate: Ichigo Owners

3rd Ichigo Residence Token Sold Out Immediately
Strong Returns Supported by Ichigo Real Estate AM Capabilities
1st, 2nd, & 3rd Ichigo Residence Tokens All Sold Out Immediately
3rd Ichigo Residence Token (Security Token)
7 Newly-Built, Central Tokyo Residential Assets(Shibakoen, Higashi Shinjuku, Toritsu Daigaku,Monzen Nakacho, Takaido, & Shinkoiwa)

Total AUM
JPY 8.9B
Total Issue Price: 2.9B
Forecast Yield: 4.1%
Asset Manager: Ichigo Investment Advisors
Investment Term: 5.2 years

GRAN PASEO Shibakoen
Note: A security token is an asset that represents ownership of an underlying asset that is transferable via a information processing
system such as a blockchain© Ichigo Inc. All rights reserved.

22

Sustainable Real Estate: Ichigo Owners

Ichigo Residence Token First Token on New START Exchange
Leading Japan’s Development of Real Estate-Backed Digital Securities by
Providing First Token Traded on New START Digital Exchange – Will
Continue to Launch New Ichigo Tokens as Market Grows− Launch of secondary market to drive higher liquidity & investor functionality
Security Token Market (AUM) Growth Forecast

Significant Growth Upside
J-REIT AUM: JPY 20T
JPY 2.6T

Private Real Estate
Fund AUM: JPY 30T

JPY 40B
2022

2032

Source: Digital Asset Co-Creation Consortium© Ichigo Inc. All rights reserved.

23

Sustainable Real Estate: Ichigo Owners

Expanding Presence in Growing Real Estate Token Market
Provide High-Quality Ichigo Real Estate to Investors & Drive AM Fee Growth

Ichigo Residence Token AUM

Target AUM Increase:
JPY 20B Annually
JPY 41B
JPY 21B
JPY 5.1B
FY23/2
Launch of First Ichigo
Residence Token© Ichigo Inc. All rights reserved.

FY24/2

FY25/2(Forecast)

FY30/224

Asset Management

Growth & ESG Support for Ichigo REITs & Ichigo Green− Supporting Ichigo Office Value-Add Capex by Subscribing to Ichigo Office Bond
Allotment (JPY350M)− Executing Second Ichigo Office Share Purchase (JPY 3.5B) – Total FY24/2 Ichigo
Office & Ichigo Hotel Share Purchases: JPY 15.5B− Ichigo Hotel RE100 Achievement
Shareholder-Focused Asset Management& Sponsor Support

Grow REIT Shareholder Value
Increase NOI
IchigoIchigo Office (8975)
Ichigo Hotel (3463)

Increase Dividend
Increase NAVREIT Growth & Ichigo AM Business Growth© Ichigo Inc. All rights reserved.

25

Clean Energy

Environmental Contribution & Long-Term Growth
Ichigo Ebino Suenaga ECO Power Plant (13.9MW) Now Online – Full-Year
Earnings Contribution in FY25/2
Green Biomass & Non-FIT Solar Power Plants in Pipeline (Total JPY 14.4B)
Stock Earnings (JPY B)

Ichigo Clean Energy
4.9
Operating Plants
One-Off Cost Increase (Forecast)
Green Biomass (FIT JPY40) 4.5
4.3(Actual)(Forecast)
In-Pipeline Non-FIT Plants

Growth Drivers
Green Biomass

57.6

Biomass power generation using
domestic feedstocks via partnerships
with local governments and communities
Contribute to solving environmental
issues via domestic forecast
conservation and forest revitalization byusing only domestic feedstocks
In-Pipeline: 5 Plants 4.9MW(205.9MW)

6.2(4.9MW)

8.1(42.1MW)

38.8
38.8(144.8MW)

43.3(158.8MW)

43.3

43.3

Total Capex(JPY B)Avg FIT© Ichigo Inc. All rights reserved.

Non-FIT Solar Power
Solar power generation for third-party
companies and households
Meeting increasing renewable energy
demand, strengthen our contribution todomestic environmental issues
In-Pipeline: 9 Plants 42.1MW

FY23/2
JPY 30.7

FY24/2
JPY 31.6

FY25/2
JPY 31.6

FY26/2~
TBD

Note: FY25/2 forecast is calculated based oneach plant’s forecast average earnings over
20-year forecast period
26

Clean Energy

Ichigo Ebino Suenaga ECO Power Plant Starts Operation
Second Largest Ichigo Plant – 20-Year, JPY 40 FIT

Operation Start Date
LocationJanuary 2, 2024
Ebino City, Miyazaki PrefectureArea

573,567m2

Panel Output

13.99MW

Annual Power Generation© Ichigo Inc. All rights reserved.

17,422,000kWh (provides power for 5,800 households)
27

Shareholder Returns

FY24/2 Share Buyback (JPY 3B)
Share Buybacks – 7th Consecutive Year
FY24/2 Total Payout Ratio Forecast: 65% (Dividends + Buybacks as % of Net Income)
Share Buybacks

JPY 4.5B
JPY 3BJPY 3BJPY 3BJPY 3BJPY 3BJPY 1.5B

FY18/2

FY19/2© Ichigo Inc. All rights reserved.

FY20/2

FY21/2

FY22/2

FY23/2

FY24/228

Shareholder Returns

Progressive Dividend Policy
Ichigo Dividend Policy: Growth, Certainty, & Stability
 DOE (Dividend on Equity) Payout Ratio of >3%– Stable and growing dividend unaffected by short-term earnings
volatility
 Progressive Dividend Policy– Under Ichigo’s progressive dividend policy, the dividend is maintainedor raised every year (but not cut), providing shareholders with thesecurity of a durable dividend.
Dividend

JPY 5

JPY 6

JPY 7

JPY 7

JPY 7

JPY 7

FY19/2

FY20/2

FY21/2

FY22/2

JPY 8

JPY 3
JPY 1

JPY 1.1 JPY 1.3

FY13/2*

FY14/2

FY15/2

FY16/2

FY17/2

FY18/2

FY23/2* Adjusted to reflect 200:1 stock split© Ichigo Inc. All rights reserved.

29

Shareholder Returns

Ichigo J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan− First Japanese company to include not just its own shareholders, but also theshareholders of the REITs and listed solar power producer that it manages, in its
shareholder program (82,000 shareholders in total)− First company to offer shareholders free tickets to every J.League game at every
J.League club

Ichigo is deepening its partnership with the J.League and working tofurther Ichigo’s mission of promoting local community development.
J.League 30th Anniversary Event(May 14, 2023)

Invited shareholders to participate inopening ceremony as flag bearers
and watch a special match

Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Inc. All rights reserved.

30

Working to Protect Our Global Environment© Ichigo Inc. All rights reserved.

31

Ichigo Climate Positive: CO2 Reduction vs. Emissions
Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) &Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction)
CO2 Reduction vs. CO2 Emissions(tons)■ Total Ichigo Power Plant CO2 Reduction1■ Total Ichigo CO2 Emissions (Scope 1+2)

CO2 Emissions
Reduction Measures

Impact ofReduction
Measures-250-7,07098,647

95,47875,42575,80883,41259,445-34,470

54,803

26,409FY20/2

FY21/2CO2 Reduction Base Year

Start RE100

FY22/2

Ongoing Initiatives
Switch to Renewable
Energy28,900 tons
Decreased Energy
Consumption
870 tons
New Initiatives
Non-Fossil Certificate2
Tracking for Ichigo Power
Plants4,700 tons

FY23/2

1 Calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a fixed constant for each period
2 Certifies the environmental value of non-fossil electricity, with tracking information on power plants that can be used for RE100© Ichigo Inc. All rights reserved.

32

Continued Renewable Energy Transition
Ichigo Ranked No. 1 in Nikkei GX 500 Ranking for Information Disclosure &Emissions Management & Reduction
Ichigo RE100 Progress

100%
RE100 Target: 2025
FY24/2 Renewable Energy Transition Impact

85%
FY24/2
Target

83%

33%

(+11%
vs. FY24/2 H1)

Non-Fossil Certificate
Tracking for Ichigo
Power Plants

Renewable
EnergySwitch50%
Renewable
EnergySwitch

CO2 Reduction

35,000 tons p.a.

CO2 Emissionsof Cars

× 15,200 cars p.a.

Includes Ichigo Hotel assets that completed transition
announced on December 25, 2023
© Ichigo Inc. All rights reserved.

33

Ichigo Sports

J.League Tegevajaro Miyazaki Acquisition
Working to Support Local Communities Across the Board− Acquired ownership of J.League Tegevajaro Miyazaki soccer club
− Establishing community-based program to promote youth soccer development
 Building strong prefecture-wide support network with local government & companies
 Fostering community & business ties and working to improve club management− Leveraging Ichigo’s sustainable real estate know-how to manage stadium &facilities

Tegevajaro Miyazaki
Websitewww.tegevajaro.com(Japanese only)© Ichigo Inc. All rights reserved.

34

Appendix: Ichigo’s Sustainability Commitment (ESG)© Ichigo Inc. All rights reserved.

35

Ichigo Sustainability Policy
Harmony With the Environment and Recycling
Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its
assets, reducing water and water consumption, and recycling.
Addressing Climate Change and Shift to Low-Carbon Society
Ichigo seeks to contribute to a low-carbon society and address climate change by lowering its energy consumption andgreenhouse gas emissions, using renewable energy, and improving the resilience of its assets.
Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules.
Ichigo also carefully monitors and complies with all applicable changes in laws and regulations.
Training, Awareness, and Cooperation With Stakeholders
Ichigo works to increase sustainability awareness via company training sessions, and promotes understanding of its
Sustainability Policy among all Ichigo employees and tenant employees working at its assets. Ichigo also works withstakeholders to promote understanding of its Sustainability Policy and implement sustainability initiatives.
Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
Sustainable Procurement
Ichigo implements sustainable procurement measures, including the use of environmentally-friendly construction methods
and materials, actively installing energy and resource efficient equipment, and the inclusion of sustainability initiatives as aselection criteria for business partners.
Building a Diverse, Inclusive Organization
Ichigo respects human rights and works to build a diverse organization where employees work with respect for each otherand realize their full potential regardless of race, beliefs, religion, skin color, nationality, age, gender, sexual orientation,
gender identity, disabilities, and social status. Ichigo also provides a healthy, comfortable work environment that focuses on
employee performance and well-being, and drives organizational growth.
Biodiversity and Ecosystem Preservation
Ichigo contributes to the preservation of biodiversity and ecosystems via the addition of greenery to the interiors andexteriors of its assets, primarily using native plants.
© Ichigo Inc. All rights reserved.

36

ESG Initiatives: Environmental
Climate Positive & Sustainability-Driven
Preserve & Improve Real Estate
to End Wasteful Demolition

Community-Based, Productive Use of
Idle Land for Clean Energy

Pro-Active Environmental
Certifications

Ichigo's Sustainable Real Estate businesshas a proven track record of preserving andimproving existing real estate. Ichigo willbuild on this long-standing commitment tosustainability by developing newtechnologies to extend the lives of buildings
and other social infrastructure 100 years
and beyond.

Ichigo will not build power plants that require
the clearing of wooded land or the altering of
the landscape in a way that increases the riskof floods, landslides, or other water-related
disasters, or that face opposition from local
communities.

By obtaining certifications such as GRESB,CASBEE, BELS, and DBJ Green Building,
Ichigo is demonstrating our long-standing
commitment to sustainability via initiatives
that benefit investors, tenants, clients, andother stakeholders.

Annual Power Production

222,927,029 kWh
Ichigo’s Sustainable Real Estate
Preserve & Create Value
Sustainable
Real Estate

Increase
Quality ofTenantServices+

Renovate &RepairIncrease= Tenant
Satisfaction

Improve aesthetics and comfort
Seismic reinforcements
Regulatory compliance
Increase energy efficiency© Ichigo Inc. All rights reserved.

Equivalent to annual energy
consumption of 51,600 households
Annual Energy Consumption(Japan Average) 4,322kWh/household(Ministry of Environment document)

Annual CO2 Reduction

98,647,576 tons
Equivalent to annual CO2 emissionof 43,000 cars
Gasoline Passenger Cars 2,300kg/car
per year(Ministry of Environment document)*Ichigo, Ichigo Green FY23/2 Actuals

Ichigo Group-Wide
Ichigo & Ichigo Office (8975)
Total 16 Assets
Ichigo Office (8975)
4 Stars / Green Star
Ichigo Hotel (3463)
2 Stars / Green Star
BELS
3 Assets
DBJ Green Building 2 Assets
Tokyo Low-Carbon
Small and Medium-Sized
Model Building
8 Assets
37

ESG Initiatives: Social
Contributing to Society
Contributing to Regional Revitalization

Ichigo University

Sports Initiatives

Ichigo works to revitalize local communities
and promote regional economic
development. Ichigo’s model of preserving
and improving existing real estate creates
jobs and supports businesses, and ourrenewable energy power plants also
support their host communities by providing
new and sustainable sources of income.

Ichigo established Ichigo University in May
2013 to support employees’ continuing
education and personal growth.

As a top partner of the J.League
professional soccer league, we support theleague’s mission to promote community
development. Ichigo supports outstanding
athletes in weightlifting, rifle shooting, andtrack and field.

Ichigo University courses are taught byemployees and external professionals whoare specialists in their fields and have deep
experience.
Average Annual Number of Courses: 30

Miyako City

Ichigo University Classes

Retail Asset / Miyazaki
www.miyakocity.com

Chisato Kiyoyama(Track and Field)
Hiromi Miyake(Weightlifting)

THE KNOT TOKYO
Shinjuku
Hotel / Tokyo
https://hotel-theknot.jp/tokyoshinjuku/en

OnlineIn-Person

Certified as a Sports Yell
Company & Tokyo Metropolitan
Government Sports
Promotion Company for 7th year in a row
Ichigo Sports Site (Japanese only)
www.ichigo.gr.jp/ichigosports© Ichigo Inc. All rights reserved.

38

ESG Initiatives: Governance
Global Best Practice Governance
Early Adopter of Global Best PracticeCorporate Governance Structure

Majority Independent Director Board
Underpins Strong Governance

All Directors on Ichigo’s Board of Directors
are aware of their fiduciary responsibility
towards shareholders and work
collaboratively and appropriately with otherstakeholders to ensure sustained value
creation for shareholders.

Of 9 members of Ichigo’s Board of
Directors, majority are Independent
Directors, including former CEOs of TSE
Prime (formerly 1st Section)

Major Initiatives
Adopted Independent Director-led, committee
based governance system in 2006
̶

Exceeded legal requirements by establishingCompliance Committee in addition to
Nominating, Audit, and Compensation
Committees

̶

̶

̶

̶

̶

Nominating Committee: 5 members(3 Independent Directors)
Audit Committee: 3 members(All Independent Directors)
Compensation Committee: 5 members(3 Independent Directors)
Compliance Committee: 4 members(2 Independent Directors)© Ichigo Inc. All rights reserved.

FY18/2 to present
Nobuhide Nakaido (former CEO of SCSK)
FY17/2 to May 2023
Masatoshi Matsuzaki (former CEO of Konica
Minolta)
FY16/2 to May 2019
Kosuke Nishimoto (former CEO of Meitec;
stepped down from Ichigo’s board upon
appointment as EVP of Misumi Group)

Annual Board of Directors
Evaluation
Board evaluations are conducted by having
each Director assess the Board along thecriteria shown below, with aggregate survey
results collectively reviewed by the Board.
(1) Board Composition(2) Board Operation(3) Board Effectiveness(4) Board Support Resources(5) Engagement with Shareholders andStakeholders(6) Board Operation Under Covid(7) SDGs and Sustainability Initiatives

FY16/2 to FY17/2
Takashi Kawamura (former CEO of Hitachi;
stepped down from Ichigo’s board upon
appointment as Chairman of TEPCO)

39

Sustainability Initiatives
Joining Third-Party Initiatives to Accelerate Ichigo’s Sustainability Activities

UN Global Compact
UN Global Compact is a global sustainability initiative that calls for companies and organizations to take leadership and take actions as members ofsociety to implement universal sustainability principles. Companies and organizations that sign the UN Global Compact are required to achieve theTen Principles regarding human rights, labor, environment, and anti-corruption based on CEO commitments.

TCFD (Task Force on Climate-related Financial Disclosures)
TCFD was established by the Financial Stability Board (“FSB”) in December 2015, at the request of the G20, to develop a framework on climaterelated financial risk disclosures and how the financial sector can address climate change. TCFD recommends that companies disclose theirclimate-related risks and opportunities.

CDP
CDP is a global initiative led by a non-profit organization representing over 500 global investors that runs the global disclosure system for investors,
companies, cities, states, and regions to manage their environmental impacts. Assessment is based on governance, risk management, businessstrategy, targets and performance, etc., and companies are scored from A to D-.
Ichigo’s scores for 2022: A- (Climate Change Assessment), A- (Water Security Assessment)

RE100
RE100 is a global initiative bringing together the world’s most influential businesses committed to 100% renewable power. The RE100’s mission isto accelerate change towards a net zero carbon society.
Ichigo’s RE100 Target: 100% renewable electricity across its operations, including Ichigo Office (8975) and Ichigo Hotel (3463), by 2025

Fun to ShareFun to Share is the Ministry of Environment’s campaign to promote the achievement of a low-carbon society by sharing the most up-to-date
information openly and broadly.
© Ichigo Inc. All rights reserved.

40

Ichigo RE100 Initiative
Further Lowering Energy Impacts as a Sustainable Infrastructure Company
Ichigo RE100 Target

100% Renewable Electricity by 2025
Ichigo is committed to sourcing 100% renewable electricity across its operations,
including Ichigo Office (8975) and Ichigo Hotel (3463)

RE100
A global initiative bringing together businesses committed to 100% renewable electricity,
including solar, wind, hydro, and biomass energy, and accelerating the change towards
a net zero carbon society.

CDP
A global initiative led by a non-profit organization representing over 500 global investors
that runs the global disclosure system for investors, companies, cities, states, andregions to manage their environmental impacts.

© Ichigo Inc. All rights reserved.

41

Rich ESG Content
ICHIGO Sustainable City

Ichigo Sustainability Report

Introducing Ichigo’s Vision for Society’s Future

Promoting Awareness of Ichigo’s Sustainability
Initiatives via Ichigo Sustainability Report

Sustainable InfrastructureSportsSenior Management Message

Sustainable Business Management

CultureSmart Agriculture

Sustainability Policy

ESG Initiatives

Regional Development

ESG/SDGs

Third-Party Assessments

ESG Data

Ichigo Brand Site: ICHIGO Sustainable City

Ichigo Sustainability Reportwww.ichigo.gr.jp/company/brand (Japanese only)

www.ichigo.gr.jp/pdf/esg/Ichigo_Sustainability_Report_ENG.pdf© Ichigo Inc. All rights reserved.

42

Appendix: Sustainable Growth asa Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

43

Stable Stock Earnings
Stock Earnings by Segment■ Asset Management

18,450(234%)■ Sustainable Real Estate■ Clean Energy(JPY million)(Stock Earnings/
Fixed Expenses, %)2,062

Full-Year
Forecast

15,065(195%)

14,912(191%)

1,832

2,091

13,331

16,985(188%)

15,598(193%)

2,066

1,694

Q3
Cumulative

9,402

8,477

8,989

3,057

3,830

4,343

4,542

3,645

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2

14,957(225%)

9,617

Note: FY24/2 Stock Earnings Breakdown: AM 1,900 + SRE 10,726 + CE 4,359© Ichigo Inc. All rights reserved.

44

Embedded Forward Earnings
Full Economic Earnings From Value-Add Exceed Accounting Earnings –Value-Add Thus Generates Significant Unrealized Gains That Are(JPY billion)
an Earnings Bank for Future Periods

63.9

65.2

FY21/2

FY22/267.8

56.2

FY20/2

FY23/2

Third-Party Appraisal Value-Based Unrealized Gains© Ichigo Inc. All rights reserved.

45

Value-Add Drives Durable Value Growth
Appraisal Value-Based Unrealized Gains
Actual Gains on Sales

2.8X

1.8X

2.2X

2.0X
JPY 17.1B

1.9X

JPY 11.6B

JPY
10.2B

JPY 9.4B
JPY 6.1B

JPY 5.7B

JPY 4.7B

JPY 6.3B

JPY 3.0B
FY20/2

FY21/2

FY22/2

FY23/2JPY
4.7B
FY24/2 Q3

Note: Self-storage assets sold in FY24/2 (36 assets, JPY3.9B gains on sales) accounted for as having no unrealized gains, as they were not the subject ofthird-party appraisals.
© Ichigo Inc. All rights reserved.

46

Robust Cash Generation
Economic Operating Cash Flow Exceeds Net Income
Net Income
Economic Operating Cash Flow

3.6X

(JPY billion)

2.0X
2.4X

1.5X

29.5
2.2X

19.5
15.6
11.1

8.2

FY20/2

FY21/2

9.6

9.4

6.5

5.0

14.4

FY22/2

FY23/2

FY24/2 Q3

Note: Economic Operating Cash Flow = Cash Flows from Operations, excluding net change in Real Estate and Power Plants for Sale, plus SRE
Extraordinary Gains on Sales© Ichigo Inc. All rights reserved.

47

Sustainable/ESG Finance
Ichigo’s ESG Execution Driving Attractive Financing Terms
Strengthening Financial Base via Diversified Borrowing
ESG Loans as % of Total Borrowings

ESG Loans■ ESG loans (including green bonds)■ Remaining ESG commitment line
■ Other corporate loans & bonds (excludes short-term loans)■ ESG loans (including green bonds)■ Remaining ESG commitment line
(as of FY24/2 Q3-end)(JPY billion)

48.5
466
136.3
1,374

(JPY billion)

Total ESG Loans(Cumulative)

JPY 87.8B

17.7

ESG Loans

33%

17.7

30.8

19.5
8.2

8.6

FY21/2

FY22/22.9
FY20/2© Ichigo Inc. All rights reserved.

FY23/2

FY24/2
Q348

Appendix: Financial & Operational Data

© Ichigo Inc. All rights reserved.

49

Business Segments

Asset Management

Asset Management (AM) generates fee income via management of
Ichigo Office (8975), Ichigo Hotel (3463), Ichigo Green (9282), andprivate real estate funds.

Sustainable
Real Estate

Sustainable Real Estate (SRE) preserves and improves real estate.
Ichigo receives rental income during the period in which it carries out
its value-add, along with earning gains on sales that reflect the realestate’s higher value after the value-add is complete.

Clean Energy

Clean Energy (CE) is utility-scale solar and wind power productionthat produces clean energy and brings productive use to idle land.

© Ichigo Inc. All rights reserved.

50

Significant Unrealized Gains on Balance Sheet
Real Estate Directly Held by Ichigo

LocationBook Value as ofNovember 30, 2023
(A)

(JPY million)

Appraisal NOI(B)

Cap Rate(B)/(A)

Appraisal Value(C)

Unrealized Gains(C) – (A)Tokyo

88,112

5,308

6.0%

124,315+36,203

OutsideTokyo

89,159

5,767

6.5%

112,918+23,758

Total

177,271

11,075

6.2%

237,233+59,961

Note: Excludes Ichigo Owners and Centro assets (book value JPY 79.7B)© Ichigo Inc. All rights reserved.

51

Risk-Based Balance Sheet
Mark-to-Market Consolidated Balance Sheet: JPY 430.6B(Book Value JPY 365.2B + Unrealized Gains JPY 65.3B)
Cash & Cash Equivalents

JPY 43.2B

Risk-Based Consolidated Balance Sheet: JPY 341.9B(Book Value JPY 276.6B + Unrealized Gains JPY 65.3B)

Non-Recourse Loans &Related Liabilities

JPY 45.4B

Non-Recourse Loans& Related Assets

JPY 63.8B
Corporate Loans
Real Estate forSale
JPY 99.8B(including Bonds

Debt
259.7BJPY 7.5B)
JPY 189.5B

Non-Recourse Loans &Related Assets JPY 18.3B

Real Estatefor Sale
JPY 99.8B

Shareholder
EquityJPY 105.5B

Other JPY 26.7B

Unrealized Gains
JPY 65.3B

Post-Tax
Unrealized Gains

JPY 45.3B
Tax JPY 20.0B(including Bonds

JPY 7.5B)
JPY 146.3B

Debt
171.0B

Other JPY 24.7B

Other JPY 24.7B

Fixed Assets
JPY 131.6B

Corporate Loans

Mark-toMarket
Shareholder
Equity Ratio

35.0%

Fixed Assets
JPY 131.6B

Shareholder
EquityJPY 105.5B

Other JPY 26.7B

Unrealized Gains
JPY 65.3B

Risk-Based
Shareholder
Equity Ratio

44.1%

Post-Tax
Unrealized Gains
JPY 45.3

Tax JPY 20.0B

Note: Risk-Based Balance Sheet excludes client and non-recourse assets & liabilities and nets out Cash & Cash Equivalents.
© Ichigo Inc. All rights reserved.

52

Cash Flow Maximization
Maximal Use of Depreciation Allowances to Increase Cash Flow
Real Estate for Sale & Fixed Assets
Fixed Assets (SRE)
Real Estate for Sale (SRE)

15.2%

30.1%

84.4%
30.9

84.4%
32.0

Fixed Asset Ratio
84.7%

84.3%

29.5

29.7

140.2
162.3
167.2

173.3

FY20/2

FY21/2

162.8

159.3

FY22/2

FY23/260.4
29.1
FY18/2

FY19/2(JPY billion)

Reclassification of
Sustainable Real
Estate Assets to Fixed
Assets in FY20/2
Maximal use ofdepreciation
allowances lowers
stated accounting
earnings, but createsvalue by being cashgenerative to fundgrowth investments

Note: Excludes Ichigo Owners, Centro, and self-storage assets© Ichigo Inc. All rights reserved.

53

Robust Cash Flow Generation & Strong Earnings BaseKey Ichigo Strength: Robust Cash Generation to Fund Growth− Maximal use of depreciation allowances to lower accounting earnings &increase cash flow
− Majority of cash earnings are Stock Earnings− Maintained high Stock Earnings/Fixed Expenses Ratio even amidst Covid(JPY million)

FY18/2

Stock Earnings (A)FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 Q3

FY24/2
Forecast

14,93918,48518,45015,065

14,912

15,598

14,957

16,985

Depreciation

967

1,632

2,507

4,603

5,278

5,135

3,511

4,769

Flow Earnings

13,015

15,273

18,567

5,850

9,793

13,371

10,43813,482

Cash Earnings

27,95333,75937,016

20,91524,70528,97025,39630,467

Fixed Expenses (B)

6,371

7,071

7,877

7,723

7,819

8,087

6,636

9,020

Stock Earnings/
Fixed Expenses (A/B)

234%

261%

234%

195%

191%

193%

225%

188%

Note: Cash Earnings = Gross Profit + Fixed Asset Gains on Sales + Depreciation Expenses© Ichigo Inc. All rights reserved.

54

Post-GFC Shift in Earnings Base & Financial Position

Stock Earnings/
Fixed Expenses
Coverage Ratio

FY09/2GFC

FY14/2Start of Shift Up MTP

FY23/2

vs. GFC

75%

140%

193%

2.6X

10.0 years
Loan Maturity(Weighted avg.,
corporate + non-recourse loans)

5.6 years
2.8 years

93%% of <3 Year Loans(corporate + non-recourse loans)Interest Rate
(Weighted avg., corporate loans)© Ichigo Inc. All rights reserved.

>3 years
7%

2.8 years

28%<3 years
28%<3 years
93%>3 years
72%

2.22%

1.96%

5.6 years

3.6X

2.8 years

21%<3 years
21%-72%>3 years
79%

0.89%

-60%
(Interest Rate -1.33%)

55

Consolidated Balance Sheet: Segment Breakdown(JPY million)
Cashand Cash
Equivalents

Operational
Loan
Investments

Operational
Securities
Investments

Real Estatefor Sale

Asset Management (AM)

–

–

–

–

Sustainable Real Estate(SRE)

13,736

1,324

17

Clean Energy (CE)

3,983

–

Company-Wide Assets

32,768

Total

50,488Segment© Ichigo Inc. All rights reserved.

Fixed
AssetsIntangible
AssetsSecurities
Investments

Other
Assets

Total
Assets

–

508

118

1,122

1,749

99,856

155,860

1,843

773

5,392

278,804––

30,819

154

–

1,782

36,739

–

–

–

90

45

13,237

1,863

48,0051,324

1799,856

186,770

2,551

14,129

10,161

365,29956

Consolidated P&L: Segment Breakdown(JPY million)

All-In Gross Profit
Segment

FY23/2 Q3All-In Operating Profit
YOY

FY24/2 Q3

FY23/2 Q3

FY24/2
Forecast

YOY

FY24/2 Q3Asset Management (AM)

1,492

1,826

+22.4%

1,055

1,105

+4.7%

1,000

Base AM Fees

1,492

1,694

+13.5%

－

－

－

－

－

132

－

－

－

－

－

Sustainable Real Estate(SRE)

14,54817,729+21.9%

10,72913,469+25.5%

15,300Rental Income

3,586

7,423

+107.0%

2,470

5,518

+123.4%－

Asset Sales

10,954

10,304

-5.9%

8,258

7,950

-3.7%

－

Other Flow Earnings

7

1-73.0%－－－－

Clean Energy (CE)

2,326

2,328

+0.1%

1,772

1,685

-4.9%

1,700

－

－

－

-29

6

－

－

18,366

21,884+19.2%

13,527

16,266+20.3%

18,000Acquisition/Disposition
Fees

Adjustment (including
offsets of crosssegment transactions)
Total

AM & CE All-In Gross Profit = Gross Profit; SRE All-In Gross Profit = Gross Profit + SRE Fixed Asset Gains on Sales
AM & CE All-In Operating Profit = Operating Profit; SRE All-In Operating Profit = Operating Profit + SRE Fixed Asset Gains on Sales© Ichigo Inc. All rights reserved.

57

Appendix: Sustainable Real Estate Details© Ichigo Inc. All rights reserved.

58

Sustainable Real Estate Social SignificanceSustainable Infrastructure for a Sustainable Society
End Wasteful Demolishment and Embrace Sustainable Real Estate‒ Improve quality of assets via Sustainable Value-Add‒ Preserve and improve highly functional real estate to contribute toenvironmental conservation and sustainability‒ Lengthening buildings’ useful lives beyond 100 years© Ichigo Inc. All rights reserved.

59

Powerful Sustainable Real Estate Business Model
Significant Synergies Between Ichigo’s Sustainable Real Estate & AssetManagement Businesses
Sustainable Real Estate Business Model
Green
Infrastructure

Solar Plants
Buy

Ichigo Green(9282)
OfficeIchigo Office(8975)
Hotel

Ichigo Hotel(3463)© Ichigo Inc. All rights reserved.

Sell

Real
不動産
EstateSustainable
Value-Add
Preserve &ImproveReal
EstateThirdParty
Investors

Sell

Buy
60

Ichigo Sustainable Real Estate Earnings Model Example
5.5% NOI Yield, JPY 2B Purchase, LTV 75%, 1.5% Interest Rate, JPY 50M
Capex, 15% Increase in NOI, 3-Year Value-Add Period
Value-Add Measures: Improved exterior, interior, & tenant services; seismic
strengthening; increased energy efficiency; new tenant leasing; etc.
NOI at Acquisition(JPY 110M NOI/year) － (JPY 22.5M interest/year) ＝ JPY 87.5M NOI/yearNOI÷ Initial Investment ＝17.5% NOI return during investment period
.

Debt
Asset

JPY1.5B

JPY
2.0B

NOI after Value-Add(JPY 126.5M NOI/year) － (JPY 22.5M interest/year) ＝ JPY 104M NOI/year
NOI ÷ Total Investment (JPY 500M + JPY 50M) ＝18.9% NOI return during
investment period.

EquityJPY 0.5B

Capital Gain
The 15% increase in NOI at an equivalent cap rate increases the exit price by
15%: JPY 2B * 115% = JPY 2.3B
JPY 2.3B – (JPY 2B + JPY 50M) = JPY 250M capital gain.

Value-Add (Capex JPY 50M )© Ichigo Inc. All rights reserved.

OutcomeJPY 550M investment generates JPY 512M over 3 years → 31.1% p.a.

61

Sustainable Real Estate

Value-Add Robust to Changes in Market Environment

NormalMarketBuy

MarketDownturn

Build strong tenant relationship
Improve assets
Improve soft services

NOI
+25%

Sustainable Real Estate
Value-Add (avg. 2-5 years)

Complete
Value-Add

Acquisition Criteria
Acquire assets with earnings upside
driven by Ichigo value-add(NOI +20～30%)

Multi-Asset

Ichigo Owners

GPM
32%

GPM
11%

Avg. Hold:
3.2 Years

Avg. Hold:
0.8 Years

Sell (orContinued Hold)

Earnings Structure/ Financial Base
Stock Earnings/Fixed Expenses c. 180%
Rental Income During Holding Period
Average Loan Period c. 10 years

Value-Add
Minimizes Downside Risk

Sell Asset at Optimal Timing

Note: NOI = FY18~FY20 Actual Office, Retail, Hotel NOI at acquisition vs. NOI at saleMulti-Asset GPM = FY18~FY20 Actual Office, Retail, Hotel (weighted average)
Ichigo Owners GPM = FY18~FY21 Actual Residential (weighted average)© Ichigo Inc. All rights reserved.

62

Sustainable Real Estate: Gross Profit Margin (GPM)
Ichigo Sustainable Value-Add Supports Ongoing High GPM
FY20/2

FY21/2

FY22/2

FY23/2

FY24/2 Q3

GPM(vs. Revenue)

28.3%

13.9%

20.6%

21.1%

19.9%

GPM
(vs. Book Value)

39.5%

16.2%

26.2%

27.1%

24.9%

Revenue(JPY M)

60,601

41,43045,83055,166

31,841Gross Profit(JPY M)

17,158

5,762

9,421

11,648

6,346

Includes Fixed Asset Gains on Sales© Ichigo Inc. All rights reserved.

63

Ichigo-Owned Real Estate Portfolio
Actively Acquiring Mid-Size Assets with Value-Add Potential, Including Retail
Assets Near Stations, Offices, Retail, & Hotels in Tokyo & Major Cities
Total Ichigo-Owned Assets: JPY 257.3B(Including Ichigo-Managed AUM: JPY 591.8B)

Ground Lease
1%

By Asset Type

Logistics
1%* Acquisition price basis (Total Ichigo-Owned Assets Book Value: JPY 254.9B)* Ichigo-Managed AUM includes JPY 11.4B Ichigo Green assets
By Location

Residential
27%(JPY billion)

Other
1%

Office
29%

150.5
(59%)

Hotel
18%

Retail23%

By Asset Size

>JPY 10B
11%<JPY 1B
18%

46.9
(18%)

JPY 5B-10B
19%

25.8

(10%)

7.3
(3%)
Tokyo

Fukuoka

Tokyo Nagoya
Metro(Ex-Tokyo)© Ichigo Inc. All rights reserved.

6.8
(3%)

5.0
(2%)

Osaka

Sendai Hokkaido

4.8
(2%)

9.8
(3%)
Other

JPY 1B-5B
52%

64

Sustainable Real Estate Asset Breakdown (1)148 Assets, JPY 254.9B, Annual NOI JPY 11B (6.2% Yield)
No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
NOI/Year

Ichigo Equity
Investment

1

Forecast Equity
Multiple

Forecast

2

3

IRR

1

RetailFixed Asset

Matsudo, Chiba

JPY 2B-3B

2005/06

51 years–

JPY 1,900M

–

–

2

RetailFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2005/1054 years

JPY 136M

JPY 1,033M

–

–

3

RetailFixed Asset

Minato-ku, Tokyo>JPY 3B

2006/0338 years

JPY 165M

JPY 1,356M

–

–

4

RetailFixed Asset

Yokohama

JPY 1B-2B

2006/0918 years

JPY 60M

JPY 1,157M

–

–

5

OfficeFixed Asset

Sendai>JPY 3B

2006/1015 years

JPY 240M

JPY 1,042M

–

–

6

OfficeFixed Asset

Fukuoka>JPY 3B

2006/1215 years

JPY 350M

JPY 1,339M

–

–

10

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/0644 years

JPY 85M

JPY 240M––

11

RetailFixed Asset

Chiyoda-ku, Tokyo

JPY 1B-2B

2007/0642 years

JPY 125M

JPY 233M––

14

Ground Lease

Fixed Asset

Atsugi, Kanagawa

JPY 2B-3B

2011/06–

JPY 172M

JPY 147M––

15

RetailFixed Asset

Hiratsuka, Kanagawa<JPY 1B

2012/0228 years

JPY 75M

JPY 172M––

16

RetailFixed Asset

Yokohama<JPY 1B

2012/10

10 years

JPY 34M

JPY 171M––

17

RetailFixed AssetToshima-ku, Tokyo>JPY 3B

2013/03

12 years

JPY 243M

JPY 340M––

18

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2013/05

37 years

JPY 57M

JPY 154M––

19

RetailFixed Asset

Chofu, Tokyo

JPY 1B-2B

2013/0638 years

JPY 136M

JPY 310M––

27

RetailFixed Asset

Tokorozawa, Saitama

JPY 1B-2B

2013/1116 years

JPY 74M

JPY 92M––

Note: Annual NOI & Yield excludes Ichigo Owners and Centro assets.
1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow.
2© Ichigo Inc. All rights reserved.

65

Sustainable Real Estate Asset Breakdown (2)Forecast
NOI/Year1

Forecast Equity
Multiple2

Ichigo Equity
Investment

Forecast
IRR3

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Fixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2014/03–

JPY 113M

JPY 273M––

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2014/0339 years

JPY 51M

JPY 108M––

32

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/04

17 years

JPY 58M

JPY 279M––

35

OfficeFixed Asset

Minato-ku, Tokyo

JPY 2B-3B

2014/05

14 years

JPY 144M

JPY 434M––

37

RetailFixed Asset

Minato-ku, Tokyo<JPY 1B

2014/0751 years

JPY 47M

JPY 77M––

39

RetailFixed Asset

Fukuoka<JPY 1B

2014/0719 years

JPY 50M

JPY 213M––

40

RetailFixed Asset

Fukuoka<JPY 1B

2014/0938 years

JPY 49M

JPY 252M

–

–

41

Hotel

Fixed Asset

Utsunomiya, Tochigi

JPY 1B-2B

2014/09

36 years

JPY 143M

JPY 400M––

42

RetailFixed Asset

Fukuoka

JPY 1B-2B

2014/09

23 years

JPY 59M

JPY 177M––

43

RetailFixed AssetOsaka

JPY 1B-2B

2014/09

21 years

JPY 114M

JPY 301M––

57

Residential

Fixed Asset

Minato-ku, Tokyo

JPY 1B-2B

2014/1219 years–

JPY 186M––

62

RetailFixed Asset

Fukuoka<JPY 1B

2014/1219 years

JPY 41M

JPY 212M––

63

RetailFixed Asset

Meguro-ku, Tokyo

JPY 1B-2B

2014/1217 years

JPY 85M

JPY 129M––

64

RetailFixed Asset

Shinagawa-ku, Tokyo<JPY 1B

2015/01–

JPY 26M

–

–

–

68

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2015/04

22 years

JPY 48M

JPY 79M––

No.

Asset Type29

Ground Lease

30

Classification1

Forecast NOI/ Year is based on the business plan of each asset and is the Forecast NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow.
2© Ichigo Inc. All rights reserved.

66

Sustainable Real Estate Asset Breakdown (3)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
NOI/Year1

Ichigo Equity
Investment

Forecast Equity

Forecast

Multiple2

IRR3

71

RetailFixed Asset

Fujisawa, Kanagawa

JPY 1B-2B

2015/07

8 years

JPY 100M

JPY 126M

–

–

110

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/0338 years

JPY 273M

JPY 905M

–

–

112

Hotel

Fixed Asset

Yokohama>JPY 3B

2016/0336 years

JPY 319M

JPY 354M

–

–

114

Hotel

Fixed Asset

Fukuoka>JPY 3B

2016/04

33 years

JPY 182M

JPY 550M

–

–

116

RetailFixed Asset

Sendai<JPY 1B

2016/04

35 years

JPY 63M

JPY 86M––

118

RetailFixed Asset

NagoyaJPY 1B-2B

2016/06

26 years

JPY 83M

JPY 102M

–

–

119

RetailFixed Asset

Shibuya-ku, Tokyo<JPY 1B

2016/06

36 years

JPY 42M

JPY 136M

–

–

120

Hotel

Fixed Asset

Shinjuku-ku, Tokyo>JPY 3B

2016/0944 years

JPY 554M

JPY 349M

–

–

121

OfficeFixed Asset

Minato-ku, Tokyo>JPY 3B

2016/1022 years

JPY 1,540M

JPY 3,450M

–

–

145

Hotel

Fixed Asset

Fukuoka>JPY 3B

2018/035 years

JPY 194M

JPY 301M

–

–

147

Hotel

Fixed Asset

Kyoto>JPY 3B

2018/08

5 years

JPY 327M

JPY 1,666M

–

–

149

RetailFixed Asset

Chiyoda-ku, Tokyo>JPY 3B

2018/09

33 years

JPY 308M

JPY 2,269M

–

–

151

OfficeFixed Asset

Fukuoka<JPY 1B

2018/1025 years

JPY 36M

JPY 38M––

155

OfficeFixed Asset

Shinagawa-ku, Tokyo

JPY 2B-3B

2019/0338 years

JPY 169M

JPY 616M

–

–

157

OfficeFixed Asset

Chiyoda-ku, Tokyo<JPY 1B

2019/04

40 years

JPY 52M

–

–

–

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow.
2© Ichigo Inc. All rights reserved.

67

Sustainable Real Estate Asset Breakdown (4)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
NOI/Year1

Forecast Equity
Multiple2

Ichigo Equity
Investment

Forecast
IRR3

159

RetailFixed Asset

Shibuya-ku, Tokyo

JPY 2B-3B

2019/05

44 years

JPY 123M

JPY 210M

–

–

161

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/0729 years

JPY 354M

JPY 1,636M

–

–

162

Hotel

Fixed Asset

Fukuoka>JPY 3B

2019/07

25 years

JPY 353M

JPY 1,170M

–

–

167

Hotel

Fixed Asset

Hiroshima>JPY 3B

2020/08

3 years

JPY 306M

–

–

–

171

OfficeFixed Asset

Taito-ku, Tokyo<JPY 1B

2022/0244 years

JPY 71M

JPY 38M––

172

OfficeFixed Asset

Sapporo, Hokaido>JPY 3B

2022/04–

JPY 624M

JPY 3,349M

–

–

175

OfficeFixed Asset

Utsunomiya, Tochigi

JPY 2B-3B

2022/09

16 years

JPY 203M

JPY 217M

–

–

177

RetailFixed Asset

Matsudo, Chiba

JPY 1B-2B

2023/01

18 years

JPY 69M

JPY 1,189M––

JPY 9,324M

JPY 31,562M––

53 Fixed Assets

JPY 152,521M
JPY 149,523M (Book Value)

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow.
2© Ichigo Inc. All rights reserved.

68Sustainable Real Estate Asset Breakdown (5)No.

Asset TypeClassification

Location

AcquisitionPrice

Acquisition
Date

Building
Age

Forecast
NOI/Year1

Forecast Equity

Ichigo Equity
Investment

Multiple2

Forecast
IRR

3

61

RetailOperational Loan

Shinjuku-ku, Tokyo

JPY 1B-2B

2014/1260 years

JPY 120M

JPY 57M

15.26X

51.7%

89

OfficeReal Estate for Sale

Musashino, Tokyo>JPY 3B

2015/0734 years

JPY 134M

JPY 670M

1.72X

13.3%

143

RetailReal Estate for Sale

Fukuoka

JPY 1B-2B

2017/0939 years

JPY 105M

JPY 223M

3.78X

19.9%

153

Hotel

Real Estate for Sale

Fukuoka<JPY 1B

2019/0230 years

JPY 110M

–

5.00X

20.3%

156

Logistics

Real Estate for Sale

Fukuoka

JPY 2B-3B

2019/0335 years

JPY 150M

JPY 651M

3.60X

30.0%

163

RetailReal Estate for Sale

Nagoya>JPY 3B

2019/08

26 years

JPY 481M

JPY 1,146M

3.47X

17.0%

166

RetailReal Estate for Sale

Shibuya-ku, Tokyo<JPY 1B

2020/0318 years

JPY 39M

JPY 83M

3.23X

13.5%

168

OfficeReal Estate for Sale

Koto-ku, Tokyo

JPY 1B-2B

2020/1133 years

JPY 105M

–

3.17X

53.6%

169

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/1038 years

JPY 54M

JPY 109M

2.70X

170.5%

170

OfficeReal Estate for Sale

Fukuoka

JPY 1B-2B

2021/11

14 years

JPY 64M

JPY 270M

1.68X

23.9%

173

OfficeReal Estate for Sale

Chiyoda-ku, Tokyo

JPY 1B-2B

2022/05

15 years

JPY 74M

JPY 121M

5.02X

74.2%

174

OfficeReal Estate for Sale

Meguro-ku, Tokyo

JPY 2B-3B

2022/08

34 years

JPY 106M

JPY 344M

3.25X

41.2%

176

OfficeReal Estate for Sale

Fukuoka<JPY 1B

2022/0918 years

JPY 41M

JPY 65M

3.85X

36.7%

178

RetailReal Estate for Sale

Shibuya-ku, Tokyo<JPY 1B

2022/12

14 years

JPY 35M

JPY 28M

7.96X

44.6%

179

OfficeReal Estate for Sale

Minato-ku, Tokyo

JPY 1B-2B

2023/0232 years

JPY 59M

JPY 170M

2.38X

33.6%

180

OfficeReal Estate for Sale

Funabashi, Chiba

JPY 2B-3B

2023/04

32 years

JPY 178M

JPY 203M

7.05X

27.3%

181

Logistics

Real Estate for Sale

Sanbu-gun, Chiba

JPY 1B-2B

2023/11

1 year

JPY 55M–––

JPY 1,910M

JPY 4,140M

3.44X

39.5%

JPY 11,235M

JPY 35,703M––

17 Real Estate For Sale

Subtotal 70 Assets

JPY 31,913M
JPY 33,823M (Book Value)
JPY 184,434M
JPY 183,346M (Book Value)

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast NOI after value-add is completed.
Forecast Equity Multiple is based on the business plan of each asset and is the sum of forecast rental income and gains on sales divided by Ichigo Investment.
3 Forecast IRR is the forecast internal rate of return based on each asset’s actual cash flow.
2© Ichigo Inc. All rights reserved.

69

Sustainable Real Estate Asset Breakdown (6)No.

Acquisition
Price

Asset Typevs. FY23/2 Q4Forecast
NOI/Year1

Ichigo Equity
Investment

Forecast Equity
Multiple

Forecast
IRR

A

Ichigo Owners (Residential)

55 Assets

JPY 64,068M+JPY 18,253M

JPY 2,496M

JPY 15,465M

–

–

B

Ichigo Owners (Other)

3 Assets

JPY 2,323M-JPY 787M

JPY 175M

JPY 1,048M

–

–

C

Centro (Primarily Office & Residential)

20 Assets

JPY 6,559M+JPY 10M

JPY 460M

JPY 1,630M––

JPY 14,367M

JPY 53,848M––

Total 148 Assets

JPY 257,386M
JPY 254,975M (Book Value)

Assets acquired in FY24/2 Q1 (3M)

Total 13 Assets

JPY 17,720M

JPY 749M

JPY 3,392M––

Assets acquired in FY24/2 Q2 (3M)

Total 7 Assets

JPY 8,431M

JPY 319M

JPY 1,586M––

Assets acquired in FY24/2 Q3 (3M)

Total 7 Assets

JPY 7,764M

JPY 312M

JPY 1,271M––

Assets acquired in FY24/2 Q3 (9M)

Total 27 Assets

JPY 33,916M

JPY 1,381M

JPY 6,250M

–

–

1

Forecast NOI/ Year is based on the business plan of each asset and is the forecast NOI after value-add is completed.

© Ichigo Inc. All rights reserved.

70

Appendix: Asset Management Details© Ichigo Inc. All rights reserved.

71

Asset Management

Ichigo REITs & Ichigo Green
Ichigo Office 8975

Ichigo Hotel 3463

Ichigo Green 9282

Portfolio

JPY 212.1B (88 Assets)

JPY 69.8B (30 Hotels)

JPY 11.4B (15 Solar Plants)

Dividend Yield

4.9%

4.4%

5.6%

・ Entered FTSE Global REIT Index,
a key benchmark for global
investors
・ Ichigo Office & Ichigo Hotel only
J-REITs with a no fixed fee,
performance fee-only fee
structure
・100% renewable energy for all
assets with full Ichigo ownership(83 assets, excludes partiallyowned and co-owned assets)

・ Geographically diversified
portfolio focused on lodgingfocused hotels
・ Ichigo Office & Ichigo Hotel only
J-REITs to implement no fixedfee, performance fee-only
structure・ Driving earnings & value growth
via value-add, strategicacquisitions & sales
・ 100% renewable energy

・ Solar power producers focusedon driving shareholder value via
income stability and earnings
growth and contributing toJapan’s self-sufficiency in clean
energy・ Portfolio of robust assets thathave suffered no injuries ordamages from natural disasters(as of January 10, 2024)

Overview*as of Dec 25, 2023

© Ichigo Inc. All rights reserved.

72

Asset Management

Growth & ESG Support for Ichigo REITs & Ichigo Green

Ichigo Office(8975)・ Strengthening growth commitment via Ichigo Office share purchase (JPY 13B)
・ Created bridge fund (Ichigo Office acquired 2 assets of 4 assets in bridge fund)Ichigo Hotel(3463)・ Strengthening growth commitment via Ichigo Hotel share purchase (JPY 2.5B)
・ Sold 5 hotel assets including Ichigo brand THE KNOT(JPY 15B) & supported third-party share allotment (JPY1.5B)
・ Reduced Ichigo Hotel operator risk via bringing in OneFive Hotels (6 Hotels, 734 rooms)

Ichigo Green(9282)

・ Ichigo ECO Energy operating all 15 power plants
・ Ichigo earnings support via minimum daylight hour guarantee

ESG Support

・ Supporting Ichigo Office & Ichigo Hotel RE100 achievement
・ Assessing asset risks using value-add know-how and supporting group-wide ESG initiatives
・ Strengthening ESG initiatives via third-party assessments
・ Group-wide real-time reporting system for natural disaster response© Ichigo Inc. All rights reserved.

73

Asset Management AUM Detail

Ichigo Office(8975)

Ichigo Hotel(3463)

Ichigo Green(9282)
Private Equity
Real Estate Funds(excluding
consolidated funds)
Total(excluding
consolidated funds)

FY19/2(12M)

FY20/2(12M)

FY21/2(12M)

FY22/2(12M)

FY23/2(12M)）

FY24/2(9M)

AUM (Fiscal Year End)JPY 203.0B

JPY 203.2B

JPY 206.1B

JPY 205.4B

JPY 212.1B

JPY 212.1B

Base AM Fee Gross Profit(Actual)JPY 1,426M

JPY 1,436M

JPY 1,524M

JPY 1,725M

JPY 1,517M

JPY 1,119M

AUM (Fiscal Year End)JPY 50.7B

JPY 50.8B

JPY 51.9B

JPY 51.9B

JPY 54.7B

JPY 69.8B

Base AM Fee Gross Profit(Actual)JPY 461M

JPY 381M

JPY 42M

JPY 95M

JPY 201M

JPY 343M

AUM (Fiscal Year End)JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

JPY 11.4B

Base AM Fee Gross Profit(Actual)

JPY 85M

JPY 82M

JPY 79M

JPY 77M

JPY 78M

JPY 63M

AUM (Fiscal Year End)JPY 20.6B

JPY 36.8B

JPY 36.8B

JPY 49.3B

JPY 42.3B

JPY 40.9B

Base AM Fee Gross Profit(Actual)JPY 41M

JPY 116M

JPY 137M

JPY 144M

JPY 212M

JPY 123M

AUM (Fiscal Year End)JPY 285.8B

JPY 302.4B

JPY 306.4B

JPY 318.2B

JPY 320.7B

JPY 334.4B

Base AM Fee Gross Profit(Actual)JPY 2,014M

JPY 2,016M

JPY 1,782M

JPY 2,042M

JPY 2,010M

JPY 1,650M

Ichigo Green Base AM Fee Gross Profit (Actual) includes operator fees.

© Ichigo Inc. All rights reserved.

74

Appendix: Clean Energy Details© Ichigo Inc. All rights reserved.

75

Ichigo Solar Power Plant Portfolio
Total Operating and In-Pipeline Ichigo-Owned Solar Power Plants: 48 Plants (151.4MW)
By Customer (Electric Power Utility Co)

By Feed-In Tariff

Hokkaido 3% Shikoku 2%
Tohoku3%
Kansai6%

Kyushu
13%
TEPCO
44%
Chubu
11%
Chugoku
18%

By Years in Operation

JPY 142%

JPY 24
7%
JPY 272%

JPY 1811%
JPY 21
7%

JPY 3210%

1-3 years
11%>5 years
55%

3-5 years
25%

JPY 3643%

Panel Output and FIT by Customer

By Solar Intensity

By Output<1 year9%

JPY 4019%

Operating

TEPCO

Panel
Output
(MW)
67.4

FIT
(Pre-Tax)
(JPY)
14-40

Panel
Output(MW)－

FIT(Pre-Tax)(JPY)－

Chugoku

26.6

18-40

－

－

Kyushu

19.3

32-40

－

－

Chubu

16.9

14-36

－

－

Kansai

9.3

18-32

－

－

Tohoku

4.6

36

－

－

Hokkaido

4.4

40

－

－

Shikoku

2.5

40

－

－

Total

151.4

－

－

－

Area

C
10%

<2MW
16%
>10MW
46%
2-10MW
38%

B
40%

A
50%

Solar Intensity Rank A: ≥4.00
Unit: kWh/m2 per day© Ichigo Inc. All rights reserved.

In-Pipeline

B: ≥3.75, <4.00

C: ≥3.50, <3.75

D: <3.576

Ichigo Solar Power Plant Portfolio
Operating
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Solar Power Plant
Ichigo Tokushima Higashi-Okinosu
Ichigo Fuchu Jogecho Yano
Ichigo Yubetsu Barou
Ichigo Maebashi Naegashima
Ichigo Kijo Takajo
Ichigo Betsukai Kawakamicho
Ichigo Toyokoro Sasadamachi
Ichigo Higashi-Hiroshima Saijocho Taguchi
Ichigo Akkeshi Shirahama
Ichigo Hamanaka Bokujo Tsurunokotai
Ichigo Yonago Izumi
Ichigo Kasaoka Takumicho
Ichigo Toki Oroshicho
Ichigo Toride Shimotakai Kita
Ichigo Toride Shimotakai Minami
Ichigo Hamanaka Bokujo Kajibayashi
Ichigo Sera Tsukuchi
Ichigo Sera Aomizu
Ichigo Showamura Ogose
Ichigo Memuro Nishi-Shikari
Ichigo Kure Yasuuracho Nakahata
Ichigo Tsu
Ichigo Kasaoka Iwanoike
Ichigo Toki Tsurusatocho Kakino
Ichigo Itoshima Iwara
Ichigo Sakahogi Fukagaya
Ichigo Sennan Kitsuneike
Ichigo Minakami Aramaki
Ichigo Takashima Kutsuki
Ichigo Toki Tsurusatocho Kakino Higashi© Ichigo Inc. All rights reserved.

Area
Shikoku
Chugoku
Hokkaido
Kanto
KyushuHokkaido
Hokkaido
Chugoku
Hokkaido
TohokuChugoku
Chugoku
Chubu
Kanto
Kanto
TohokuChugoku
Chugoku
Kanto
Hokkaido
Chugoku
Chubu
Chugoku
Chubu
KyushuChubu
Kansai
Kanto
Kansai
Chubu

Panel Output
(MW)
2.52
0.99
0.80
0.67
0.89
0.88
0.60
2.72
0.80
2.31
2.61
1.11
1.39
1.03
0.54
2.31
2.54
2.87
43.34
1.32
2.90
2.94
2.64
1.31
1.48
2.89
2.86
12.02
3.74
1.67

FIT
(Pre-tax)
JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40
JPY 36
JPY 40
JPY 32
JPY 36
JPY 32
JPY 32
JPY 36
JPY 32
JPY 32
JPY 36
JPY 40
JPY 36
JPY 24
JPY 24
JPY 24
JPY 36
JPY 21
JPY 21JPY 36
JPY 32
JPY 21

Operation
Start Date
2013/08
2014/03
2014/04
2014/04
2014/04
2014/10
2014/10
2015/01
2015/03
2015/122016/01
2016/03
2016/06
2016/07
2016/07
2016/102017/022017/082017/092018/022018/032018/032018/032018/04
2019/01
2019/05
2019/07
2020/01
2020/01
2020/0277

Ichigo Solar Power Plant Portfolio
OperatingNo.

Solar Power Plant

31

Ichigo Hitachiomiya
Ichigo Hokota Aoyagi
Ichigo Kasaoka Osakaike
Ichigo Minokamo Hachiyacho Kamihachiya
Ichigo Seto Jokojicho
Ichigo Toride Shimotakai Nishi
Ichigo Chiba Wakaba-ku Omiyacho Higashi
Ichigo Kasaoka Idachiike
Ichigo Komagane Akaho Minami
Ichigo Komagane Akaho Kita
Ichigo Chiba Wakaba-ku Omiyacho Nishi
Ichigo Tatsunomachi Sawasoko
Ichigo Miyakonojo Takazakicho Tsumagirishima
Ichigo Kobe Pompuike
Ichigo Obu Yoshidamachi
Ichigo Sera Shimozuta
Ichigo Ueda Yoshidaike
Ichigo Ebino Suenaga
Total (Operating)

32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48

© Ichigo Inc. All rights reserved.

Area
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Kanto
Chugoku
Chubu
Chubu
Kanto
Chubu
KyushuKansai
Chubu
Chugoku
Chubu
Kyushu48 Plants

Panel Output
(MW)
2.99
2.48
2.66
1.29
1.45
2.84
0.74
2.66
0.74
0.39
0.74
0.74
2.96
2.73
1.00
2.93
1.16
13.99
151.4MW

FIT(Pre-tax)
JPY 24
JPY 27
JPY 21
JPY 18JPY 18JPY 18JPY 14
JPY 18JPY 14
JPY 14
JPY 14
JPY 14
JPY 32
JPY 18JPY 18JPY 18JPY 18
JPY 40Operation
Start Date
2020/032020/04
2020/04
2020/09
2020/102021/01
2021/092021/102021/112021/112021/112021/122021/122022/01
2022/032022/032022/112024/0178

Ichigo Wind Power Plant Portfolio
OperatingNo.
1Wind Power Plant
Ichigo Yonezawa Itaya
Total (Operating)

Area

Panel Output
(MW)

FIT
(Pre-tax)

Operation
Start Date

Tohoku7.39

JPY 222021/03

1 Plant

7.3MW

Ichigo Solar & Wind Power Plant (Operating/In-Pipeline) Total: 49 Plants 158.8MW
Reference: Japan’s Feed-In Tariff (FIT)• A policy mechanism to encourage investment in renewable energies by guaranteeing a fixed purchase price for electricity over a 20-year
contract period• The fixed price for new contracts is adjusted every year, but locked in for the duration of the contract period
Power Source[Contract Period]

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Determined via Determined via Determined via Determined via Determined via
Determined via auction process
auction process auction process auction process auction process auction process(>2,000kW)(>500kW)(>250kW)(>250kW)(>250kW)(>250kW)

Solar Power(>10kW)[20 years]

Wind Power(>20kW)[20 years]

Biomass(Domestic Feedstocks)[20 years]

JPY 40

JPY 36

JPY 32

JPY 29JPY 27

JPY 24

JPY 21(10kW2,000kW)

JPY 18(10kW2,000kW)

JPY 14(10kW500kW)

JPY 12(50kW250kW)

JPY 11(50kW250kW)

JPY 10(50kW250kW)

JPY 9.5(50kW250kW)

JPY 13(10kW50kW)

JPY 12(10kW50kW)

JPY 11(10kW50kW)

JPY 10(10kW50kW)

JPY 21
JPY 22

JPY 32© Ichigo Inc. All rights reserved.

JPY 22

JPY 22

JPY 22

JPY 22*JPY 22 until
Sept 30, 2017

JPY 20

JPY 19JPY 18JPY 17

JPY 16

JPY 15

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 40(<2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32(>2,000kW)

JPY 32

79

Ichigo Green (9282) Solar Plant Portfolio
Operating
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Solar Power Plant
Ichigo Kiryu Okuzawa
Ichigo Motomombetsu
Ichigo Muroran Hatchodaira
Ichigo Engaru Kiyokawa
Ichigo Iyo Nakayamacho Izubuchi
Ichigo Nakashibetsu Midorigaoka
Ichigo Abira Toasa
Ichigo Toyokoro
Ichigo Nago Futami
Ichigo Engaru Higashimachi
Ichigo Takamatsu Kokubunjicho Nii
Ichigo Miyakonojo Yasuhisacho
Ichigo Toyokawa Mitocho Sawakihama
Ichigo Yamaguchi Aionishi
Ichigo Yamaguchi Sayama
Total (Operating)

Area
Kanto
Hokkaido
Hokkaido
Hokkaido
Shikoku
Hokkaido
Hokkaido
Hokkaido
Okinawa
Hokkaido
Shikoku
Kyushu
Chubu
Chugoku
Chugoku
15 Plants

Panel Output
(MW)
1.33
1.40
1.24
1.12
1.23
1.93
1.16
1.02
8.44
1.24
2.43
1.44
1.80
1.24
2.35

FIT
(Pre-tax)
JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40JPY 40
JPY 36
JPY 36
JPY 32
JPY 40
JPY 36

Operation
Start Date
2013/09
2014/02
2014/03
2014/03
2014/04
2014/11
2014/12
2014/122015/02
2015/02
2015/06
2015/07
2015/09
2015/122016/04

29.4MW

Ichigo & Ichigo Green Power Plant (Operating/In-Pipeline) Total: 188.2MW
Solar Power Plants: 151.4MW
Wind Power Plants: 7.3MW
Ichigo Green Plants: 29.4MW© Ichigo Inc. All rights reserved.

80

Green Biomass Entry
Fully Local Green Biomass as Ichigo’s 3rd Renewable Energy Business− 5 Plants In Development (4.9MW, JPY 6.2B in Total Business Expenses)− Diversify & stabilize power production− Procure biomass feedstock via Ichigo’s relationships with local government
Weather
Characteristics
Impacts
Solar Power・ Lots of potential plant site candidates, able to make effective use ofidle land

YesWind Power・ Night time power production capability

Yes・ 24-hour power generation capacity regardless of weather conditions
・ Able to control power generation
・ Requires stable supply of biomass energy sources

No

Biomass

Maintain & Conserve Forests− Support biodiversity & contribute to fight against climate change
Purposeful Use of Japan’s Abundant Forest Resources− Japan’s forest ratio is 67% (3rd highest amongst OECD countries), 8th largest
cultivated forest area in the world− Productive use of unused domestic wood materials as biomass energy source© Ichigo Inc. All rights reserved.

81

Appendix: Financial Statements© Ichigo Inc. All rights reserved.

82

Consolidated Balance Sheet: Assets(JPY million)
FY20/2
AssetsCurrent Assets
Cash and cash equivalents
Trade notes and accounts receivable
Operational loan investments
Operational securities investments
Real estate for sale
Other
Less: allowance for doubtful accounts
Total Current Assets
Fixed Assets
Property, Plant, and Equipment
Buildings and structures (net)
Solar and wind power plants (net)Land
Other (net)Total Property, Plant, and Equipment
Intangible Assets
Goodwill
Leasehold rights
Other
Total Intangible Assets
Investments and Other Assets
Securities investments
Long-term loans receivable
Deferred tax assets
Other
Less: allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets© Ichigo Inc. All rights reserved.

FY21/2

FY22/2

FY23/2

FY24/2 H1

FY24/2 Q3

vs. FY24/2 H1

41,067
2,308
1,324
902
68,2903,721-6
117,608

50,832
1,382
1,324
590
64,1092,698-167
120,771

46,458
1,819
1,324
2,547
68,666
2,613-633
122,798

40,536
3,866
1,324
47
79,151
3,197-66
128,057

47,759
2,434
1,324
1,195
96,5312,830-13152,063

50,488
2,941
1,324
17
99,856
3,123-14
157,737+2,729+507–-1,178+3,325+293-1+5,67455,05023,425
122,114
5,607
206,198

60,67324,191
122,592
6,935
214,392

56,20827,953116,079
3,796
204,038

54,03926,862
114,4313,990
199,323

44,62026,010106,219
6,719
183,570

46,01325,624106,219
8,912
186,770+1,393-386–+2,193+3,200

1,090
687
705
2,482

968
1,272
1,797
4,038

1,580
1,365
605
3,551

717
1,397
283
2,398

674
1,332
213
2,220

1,022
1,332
195
2,551

+348
–
-18
+331

4,321
510
568
2,128
-91
7,436
216,118
333,726

5,147
10
605
2,202
-91
7,874
226,305
347,076

3,463
270
883
3,013
-131
7,498
215,089
337,887

4,455
240
341
3,937
-133
8,840
210,562
338,619

14,588
225
350
3,893
-545
18,512
204,303356,367

14,129
217
384
4,052
-543
18,240207,562
365,299

-459
-8
+34
+159
+2
-272
+3,259+8,93283

Consolidated Balance Sheet: Liabilities & Net Assets(JPY million)
FY20/2
Liabilities
Current Liabilities
Short-term loans
Bonds (due within one year)
Long-term loans (due within one year)
Long-term non-recourse loans (due within one year)
Income taxes payable
Accrued bonuses
Other current liabilities
Total Current Liabilities
Long-Term Liabilities
Bonds
Long-term loans
Long-term non-recourse loans
Deferred tax liabilities
Long-term security deposits received
Other long-term liabilities
Total Long-Term Liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
CapitalCapital reserve
Retained earnings
Treasury shares
Total Shareholders’ Equity
Accumulated Other Comprehensive Income
Valuation gains (losses) on other securities
Deferred gains (losses) on long-term interest rate
hedgesTotal Accumulated Other Comprehensive Income
Stock Options
Minority Interests
Total Net Assets
Total Liabilities and Net Assets© Ichigo Inc. All rights reserved.

FY21/2

FY22/2

FY23/2

FY24/2 H1

FY24/2 Q3

vs. FY24/2 H1

3,086
274
12,277

4,879
274
9,751

2,382
274
9,888

962
364
8,539

5,526
292
12,936

4,626
3,222
15,796-900+2,930+2,860

1,178

1,358

1,375

4,218

4,244

6,379

+2,135

2,416
33
5,013
24,280573
95,527
22,374

1,888
39
5,012
20,861

949
112
4,053
19,200

3,817
268
3,650
30,736

2,804
457
4,302
37,588-1,013+189+652+6,852

6,082
151,483

5,878
156,890

5,603
150,389

5,239
152,624

7,158
153,345

4,287
161,643-2,871+8,29839,156
1,890
8,118
1,107
207,838
232,119

40,974
1,868
7,795
1,039
214,446
236,820

39,489
1,795
6,749
805
204,833
225,695

38,012
1,589
7,163
396
205,026
224,226

37,156
1,451
6,705
417
206,234
236,971

35,970
1,456
6,891
329
210,578
248,167-1,186+5+186-88+4,344+11,196

26,885
11,272
71,505-8,988100,674

26,888
11,27573,160-11,988
99,33526,888
11,26876,310-13,423
101,043

26,888
11,26682,438-17,914102,678

26,888
11,26687,321-17,914
107,561

26,888
10,321
88,476-19,977
105,708–-945+1,155-2,063-1,853

158

90

25

296

351

-270

-621

-397

-375

-254

51

-12

118

+130

-239
988
184
101,607
333,726-285
1,007
10,197110,255
347,076-228
961
10,415
112,191
337,887347
814
10,552
114,393338,619339
832
10,663
119,395
356,367-151
857
10,718117,132
365,299

-490
+25
+55
-2,263+8,93284

Consolidated P&L(JPY million)
FY20/2(12M)

FY21/2(12M)

FY22/2(12M)

FY23/2(12M)

FY24/2 Q3(9M)

FY23/2 Q3(9M)

FY24/2Full-Year
Forecast

Change(YOY)

vs.
Forecast

Revenue
Cost of Goods Sold
Gross Profit
SG&A
Operating Profit
Non-Operating Income
Interest income
Dividend income
Mark-to-market gains on long-term interest
rate hedges
Other
Total Non-Operating Income
Non-Operating Expenses
Interest expense
Mark-to-market losses on long-term interest
rate hedges

87,36052,851
34,5096,787
27,721

61,36845,776
15,591
5,923
9,668

56,93440,757
16,177
6,159
10,01868,093
48,674
19,4186,926
12,492

38,41924,874
13,545
5,618
7,927

52,797
38,847
13,9504,839
9,111-14,378-13,973-405+779-1,184

–
–
–
–
9,500

–
–
–
–
83.4%

8
78

17
78

29
30

46
38

27
131

34
36

-7
+95

–
–

–
–

–

243

98

790

71

642

-571

–

–

62
150

78
417

202
361

103
979

154
384

82
796

+72
-412

–
–

–
–

2,293

2,338

2,341

2,165

1,738

1,629

+109

–

–

336

29

53

–

267

–

+267

–

–

Debt financing-related fees
Other
Total Non-Operating Expenses
Recurring Profit
Extraordinary Gains
Gains on sales of fixed assets
Gains on sales of securities investments
Gains on sale of shares in affiliates
Gains on sales of subsidiary shares
Other
Total Extraordinary Gains
Extraordinary Losses
Loss on disposal of fixed assets
Valuation losses on securities investments
Impairment loss
Covid writedown of real estate for sale
Other
Total Extraordinary Losses
Pre-Tax Income
Total Income Taxes
Pre-Minority Interest Net Income
Net Income Attributable to Minority Interests

538
307
3,476
24,395

279
258
2,906
7,179

157
355
2,908
7,471

171
285
2,622
10,848

231
271
2,509
5,803

97
180
1,907
8,000

+134
+91
+602
-2,197

–
–
–
6,000

–
–
–
96.7%

–
11
–
169
35
215

720
–
–
–
–
720

3,248
15
–
–
120
3,383

4,416
–
–
–
205
4,621

4,378
89
3,960
–
385
8,814

4,416
–
–
–
–
4,416

-38
+89
+3,960–+385+4,398

–
–
–
–
–
–

–
–
–
–
–
–

27
229
319
7,487
–
8,065
16,545
7,406
9,139
938
8,201

–
114
27
–
146
288
7,610
2,564
5,046
18
5,027

5
43
716
–
493
1,259
9,595
2,901
6,694
220
6,473

23
261
803
–
146
1,235
14,234
4,578
9,656
246
9,409

–
–
–
–
409
409
14,208
4,446
9,761
170
9,590

–
–
–
–
–
–
12,416
3,781
8,634
164
8,470

–
–
–
–
+409
+409
+1,792+665+1,127+6+1,120

–
–
–
–
–
–
–
–
–
–
10,000

–
–
–
–
–
–
–
–
–
–
95.9%

Net Income© Ichigo Inc. All rights reserved.

85

Consolidated Cash Flows: Operations(JPY million)
FY20/2 (12M)
Cash Flows from Operations
Pre-tax income
Depreciation
Share-based compensation expenses
Amortization of goodwill
Increase (decrease) in accrued bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expense
Losses (gains) on sale of subsidiary shares
Losses (gains) on sale of shares in affiliates
Losses (gains) on sale of securities investments
Losses (gains) on disposal of fixed assets
Losses (gains) on sale of fixed assets
Impairment loss
Valuation losses on securities investments
Decrease (increase) in trading notes and receivables
Decrease (increase) in operational securities investments
Decrease (increase) in real estate for sale
Covid writedown of real estate for sale
Valuation losses on SPC capital contributions
Decrease (increase) in advances paid
Decrease (increase) in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in security deposits received
Other
Sub-TotalInterest and dividend income received
Interest expenses paid
Income taxes paid and refunded
Net Cash from (Used for) Operations© Ichigo Inc. All rights reserved.

16,545
2,630
194
174
2
4
-86
2,293
-169
–
-11
–
–
319
229
-903
11,682-17,447
7,487
–
16
29
201
-36
-285
-169
600
23,30486-2,068-9,43011,892

FY21/2 (12M)
7,610
4,797
21
121
-24
161
-96
2,338
–
–
–
–
-720
27
114
925
343
5,342
–
4
61
16
-437
94
-57
-323
1,550
21,87096-2,119-4,384
15,463

FY22/2 (12M)
9,595
5,644
73
149
29
505
-60
2,341
–
–
-15
5
-3,248
716
43
-437
1,279
-3,873
–
2
-60
-74
-113
25
795
-1,045-877
11,40360-2,174-1,3507,939

FY23/2 (12M)
14,234
5,339
–
177
73
134
-85
2,165
–
–
–
23
-4,416803
261-2,096
3,178-10,114
–
3
-6
-62
462
-38
-908
413
-1,8597,682
85-2,051-5,462254

FY24/2 Q3 (9M)
14,208
3,661
–
64
352
357
-158
1,738
–
-3,960-89–-4,378
–
–
1,000
1,225
-21,373
–
–
-664
148
-682
54
13
-144
1,634
-6,992
158-1,538-2,662-11,03486

Consolidated Cash Flows: Investments & Financing(JPY million)
FY20/2 (12M)
Cash Flows from Investments
Payments into time deposits
Proceeds from withdrawal from time deposits
Payments for securities investments
Proceeds from sale of securities investments
Acquisitions of property, plant, and equipment
Proceeds from sale of property, plant, andequipment
Acquisitions of intangible assets
Payments of SPC capital contributions
Redemptions of SPC capital contributions
Payments of security deposits
Proceeds from sale of subsidiary shares resulting inchange of consolidation scope
Acquisitions of consolidated subsidiary
Other
Net Cash from (Used for ) Investments
Cash Flows from Financing
Net increase (decrease) in short-term loans
Proceeds from bond issuance
Repayment of maturing bond principal to bondholders
Proceeds from long-term loans
Repayment of long-term loans
Proceeds from long-term non-recourse loans
Repayment of long-term non-recourse loans
Proceeds from employee exercise of stock options
Share buyback
Proceeds from minority interests
Payments to minority interests
Dividends paid to minority interests
Dividends paid
Net Cash from (Used for ) Financing© Ichigo Inc. All rights reserved.

FY21/2 (12M)

FY22/2 (12M)

FY23/2 (12M)

FY24/2 Q3 (9M)

-113
5,033
-2,361
111-11,244

-7
–
-547
10
-16,447

-7
30
-606
569
-5,798

-2
23
-968
–
-10,516––-12,732125-6,859–2,850

12,757

14,065

17,110

-562
-2
–
-34

-1,468
-3
15
–

-195
-4
–
-16

-24
-6
97
–

-96
–
–
-127

–

–

–

–

3,356

-187
-902
-10,263–-30-15,630

–
-223
6,502

–
-33
2,635

–
1,833
2,608

426
5,828
-193
49,957-26,475
5,300-17,701
95-2,999–-1,276-8-3,416
9,537

1,793
70
-274
51,877-48,996
3,300-1,301
4-2,99910,000–-5-3,298
10,167-2,497–-274
26,552-32,940–-1,467–-1,499––-2-3,230-15,360-1,419–-274
41,834-40,385
3,000-1,633–-4,499––-6-3,197-6,582

3,664
2,161
-263
46,472-26,906
4,600-4,481–-2,302––-4-3,552
19,38587

Ichigo 2030: Ichigo as a Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

88

Go for Growth
Grow & Expand Ichigo’s Core Businesses into New Areas, Creating New
Earnings Streams and Increasing Both Earnings and Earnings Stability
Sustainability

Infrastructure

Sustainability is integral to the health anddevelopment of people, society, and the environment.

Ichigo has a direct and critically important role inpreserving and improving the social infrastructure that
supports the quality of people’s lives.

Ichigo’s current core business of preserving andimproving real estate is a highly sustainable businessmodel that combines high efficiency with low
environmental impact.
Under Ichigo 2030, Ichigo will continue its longstanding commitment to sustainability whiledeveloping new technologies to extend the lives ofkey social infrastructure beyond 100 years.

By expanding its current real estate and clean energy
businesses into other infrastructure areas, Ichigo will
integrate the “hard” physical elements and “soft”
service elements of infrastructure to serve broadclient needs.
Critical to success will be unifying Ichigo’s
Sustainable Value-Add and IT capabilities. Ichigo will
work to deliver first-in-class and best-in-classsolutions to drive significant value for clients andsociety across a diverse set of infrastructures. Being
one of many is not enough. Ichigo needs to lead.

Ichigo as a Sustainable Infrastructure Company© Ichigo Inc. All rights reserved.

89Addressing Diverse Needs of Individuals & Communities© Ichigo Inc. All rights reserved.

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KPI Targets
1. High Capital Efficiency− FY20/2~FY30/2 Average ROE >15%
 Increase long-term ROE by driving higher capital efficiency & earnings stability
 Via high ROE, grow long-term EPS as a key driver of shareholder value− Target 11 consecutive years of JPX-Nikkei 400 Index inclusion
 Consecutive inclusion until periodic review in August 2030

2. High Cash Flow Generation− FY20/2~FY30/2 Continuous Economic Operating Cash Flow > Net Income
 Ichigo’s robust cash flows fund both growth investments and shareholder returns
 Target 11 consecutive years of EOCF > NI

3. High Earnings Stability− FY30/2 Stock Earnings Ratio >60%
 Raise Stock Earnings ratio from FY19/2’s 53%
 Concurrently increase and diversify Flow Earnings, which are currently centered on
Sustainable Real Estate Gains on Sales
Note: Economic Operating Cash Flow = Cash Flows from Operations, excluding net investment in Real Estate and Power Plants for Sale,
plus post-tax gains on sales of Sustainable Real Estate assets recorded as extraordinary gains© Ichigo Inc. All rights reserved.

91

Shareholder Return Policy
Ichigo Dividend Policy: Growth, Certainty, & Stability− Progressive Dividend Policy
 Ichigo’s progressive dividend policy underscores our commitment todriving continued organic earnings and dividend growth forshareholders. Under this policy, the dividend is maintained or raised
every year (but not cut), providing shareholders with the security of adurable dividend.
− DOE (Dividend on Equity) Payout Ratio of >3%
 Stable and growing dividend unaffected by short-term earnings volatility− Flexible Deployment of Share Buybacks (New)Dividend Growth via
DOE > 3% Policy

 Conduct share buybacks to optimize capital
structure and drive shareholder value

JPY 5

JPY 6

JPY 7

JPY 7

JPY 7

JPY 7

FY19/2

FY20/2

FY21/2

FY22/2

JPY 8

JPY 3
JPY 1*

JPY 1.1 JPY 1.3

FY13/2
FY14/2
FY15/2* Adjusted to reflect 200:1 stock split© Ichigo Inc. All rights reserved.

FY16/2

FY17/2

FY18/2

FY23/2
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Ichigo 2030: New Initiatives© Ichigo Inc. All rights reserved.

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Real Estate x Sports

Top Partner of J.League, Japan’s Professional Soccer League
Partner with J.League to Promote Community Development, Revitalize Local
Economies, & Help People Enjoy Fuller and Healthier Lives
J.League’s 100-Year Vision:
Promote Sports Development

Ichigo’s Mission:Serve Important Social Needs

J.League’s mission is to establish sports clubs rooted in local
communities, cooperating with local residents, businesses, andmunicipalities to promote community development

Ichigo believes that companies exist to serve society, andseeks to contribute to local communities as a sustainableinfrastructure company

Ichigo’s role as the only real estate company that is a J.League Top Partner:– Renovate and upgrade stadiums and help local governments find solutions for the rising costs ofoperating stadiums– Work to build stronger and healthier communities in cooperation with local residents, businesses, andmunicipalities© Ichigo Inc. All rights reserved.

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Real Estate x IT x Tourism

PROPERA: Ichigo's AI Hotel Revenue Management System− Maximizes Hotel Revenues & Increases Labor Productivity− Solves Issues Faced by Hotels and Supports Competitiveness− Developed PROPERA-Lite* Tailored to Hotels’ Needs* Provides limited information on pricing levels

Number of Lodging Facilities
in Japan

50,000

Number of Hotel Booking
System Users

Revenue Managers- Determine prices based on guest room
reservations and market research- Reflect prices in hotel booking
system

20,000Issues Faced by Lodging Facilities
Managing Check-in/Check-out and Revenue-

Managing Multiple Reservation Sites

Lack of revenue managers
Dependent on managers’ know-how
Differences in skill levels
Labor-intensive

Hotel
Booking System

Core Hotel System

From People to AI
Reservation
Information

Optimal Pricing
Information onreservations andsales conditions

Actual Sales Information

PROPERABusiness Alliance withTEMAIRAZU used by hotel
reservation sites such as
Booking.com

Lead time between installing algorithm leveraging Ichigo know-how
and system implementation is shortest in the industry© Ichigo Inc. All rights reserved.

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Real Estate x IT x Tourism

PROPERA: Market Size & Customer Acquisition Target
Customer Acquisition Target: 2,000 Hotels
c. 50,000

No. Of Japanese Hotels

c. 33,000

No. Of Japanese Hotels With
Online Booking Systems

c. 20,000

No. Of Japanese Hotels
Deploying Site Controllers

2,000
Hotels

FY26/2
TargetSite controller: A channel management system that integrates & coordinates information
across multiple online distribution channels© Ichigo Inc. All rights reserved.

96

Real Estate x IT x Tourism

PROPERA: Accelerating External Sales
Two Key Initiatives to Increase Market Share
1. Drive Customer Growth via
PROPERA Lite
PROPERA Lite・ Price trend visualization only・ Pricing requires manual intervention
・ Usage fee: JPY 26K monthly per hotel

2. Tightly Integrate With Site Controllers
PROPERA Site Controller Integration
Will Give Access to c. 18,000 Hotels(90% of all Japanese hotels
with site controllers)

Increase Share to 2,000 Hotels by FY26/2
Drive Earnings via Shift From PROPERA Lite to PROPERAPROPERA・ Fully Automated Revenue Optimization
・ Usage Fee: 1% of Revenue(monthly per hotel)**Standard Plan
© Ichigo Inc. All rights reserved.

PROPERA Sample Earnings Model
Hotel with RevPAR JPY 6,000 and 100 rooms
Annual Ichigo Earnings: c. JPY 2M
97

PROPERA: Ichigo's AI Hotel Revenue Management System
Launch ofThird-Party
Sales

Increase Market Share

Drive Non-Asset Stock
Earnings

Earnings Upside From Participation in
Hotel Earnings GrowthLong-Term Earnings Growth

PROPERA Business Market Turnaround・ Strong domestic & inbound hotel demand recovery
・ Focus on operating cost reductions
・ Optimizing operations impacted by staff shortage
FY24/2
TargetStart promotions targeting
1,000 hotels with PMS that havecompleted integrating systems
by FY22/2-end

2,000
Hotels(10% Market
Share*)
FY26/2
TargetLaunch ofThird-Party
Sales

49
Hotels
FY21/2127
Hotels155

500

Sample Earnings Model

HotelsUsage Fee: 1% of Revenue

Hotel with RevPAR JPY 6,000& 100 Rooms

Hotels

FY22/2

FY23/2
Actual* Of JapaneseHotels
Deploying Site
Controllers

Target of 500 hotels moved to
FY24/2 to allow more time forcustomization of PMS integration

Annual Ichigo Earnings:
JPY 2M

1 PMS: In-house hotel system that manages check-in/check-out & revenue 2 20,000 Japanese Hotels Deploying Site Controllers© Ichigo Inc. All rights reserved.

98Real Estate x Tourism

OneFive Hotels: Hotel Operations
Non-Asset Business Growth Driver− Operations and Master Leases of Third-Party Hotels− Growth Exceeding Pre-Covid Levels Without Dedicated Sales andMarketing Teams− Driving Earnings and Cost Reductions via PROPERA deployment at
hotels (generating 10 to 40% revenue increases p.a.)Operating 14 hotels (1,768 rooms)
in major cities
Name changed from Hakata Hotels Inc. on May 31, 2023

HOTEL IL PALAZZO
Tourism

The OneFive Villa Fukuoka© Ichigo Inc. All rights reserved.

The OneFive Terrace Fukuoka
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Real Estate x Entertainment x Culture x Tourism

Ichigo Animation: Anime + Real Estate Synergies
Released the Complete Series of New Anime VLADLOVE Written & Directedby Mamoru Oshii, with Co-Director Junji Nishimura– Established Ichigo Animation in April 2019
– Introducing tenant collaboration initiatives that go beyond typical owner/tenant,hands-off leasing relationships– Collaborating across multiple industries to drive new synergies with Ichigo’s existing
businesses

New Earnings via Anime Content Streaming & Sales of DVDs, CDs, & Goods
Promote Ichigo’s AKIBA CULTURES ZONE (ACZ) as Global Anime Landmark– Increase ACZ’s value by integrating anime content & events(anime, dance, music, entertainment, retail, tourism, etc.)

Entertainment

 Anime-related events & sales of goods at ACZ will drive
both customer traffic & higher earnings
Tourism×©2020 Mamoru Oshii/Ichigo Animation© Ichigo Inc. All rights reserved.

CultureAKIBA CULTURES ZONE
100

These materials were prepared to explain Ichigo’s businesses and are not for the purpose of soliciting investment inmarketable securities issued by Ichigo. Ichigo does not guarantee the accuracy of the figures, information, estimates, orother statements included herein, and accepts no responsibility for damages or losses arising through the use of the
figures, information, estimates, or other statements contained herein.
These materials are based upon information available as of the publication date, and may contain forward-looking
statements pertaining to Ichigo’s expectations, targets, plans, and strategies. Such forward-looking statements are notfacts, but are the result of management’s judgment based on information currently available. Actual operating results ordevelopments concerning Ichigo may differ substantially from those indicated by forward-looking statements. The
information enclosed is subject to revision without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation,
the Japanese version shall prevail.

Make The World
More Sustainable

Contact:
Ichigo (TSE Prime 2337)
Investor Relations
TEL: +81-3-4485-5221
E-mail: ir@ichigo.gr.jp
www.ichigo.gr.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company.
We are taking responsibility for our environmental footprint by offsetting ourcarbon emissions and investing in low-carbon technologies such as solar energy.

© Ichigo Inc. All rights reserved.

101